[kinoxi]

The depreciation of the dollar actually lowers our deficit in 'real value' comparatively. If someone owed you ten dollars ten years ago it would be worth more then (ten years ago) in real value due to inflation for instance. I don't approve of this numbers game BTW but it happens to be true.

The Euro's appreciation (dollars depreciation) has lowered any debt incurred at the beginning (strong dollar portion) of the cycle by a proportionate amount. A lower dollar also increases American manufacturer's competitiveness globally on average. It's kind of a double edged sword and historically speaking the Euro is too young of a currency to say whether this is normal or not.

[the invisib1e hand]

It's kind of a double edged sword and historically speaking the Euro is too young of a currency to say whether this is normal or not.

Right. However, europe has been around plenty long enough to judge its relative value as an engine of economic growth. It has none.

Europe is monetizing its dollar denominated assets. Brilliant scheme. It will be countered.

[GodGunsGuts]

The problem is, by shifting our debt burden to the world, we are screwing our trading partners and threatening the status of the USD as the world's reserve currency. We receive innumerable benefits from this privilege. And if the world turns its back on the greenback, they will have no choice but to dump their worthless dollars into US assets, which will cause domestic prices to skyrocket.