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The problem with the idea that the dollar's decline is deliberate policy is that it assumes US policymakers have a far greater level of control over the dollar than they really do. There are reliable ways to devalue currency, but if the US govt was taking those than core inflation would be a big problem, and it isn't.
I don't see the US recovery being a false one; rather the opposite, the period of stagnation following the recession has been artificially lengthened by exceptionally conservative investors and board members (many in those overlapping groups having been burned by the dot.com bust) and of course terrorism and Iraq. The fundamentals are there and the capital is there but the willingness to take risks has been absent. This is also a large part of what has kept employment down.
The Euro is too potentially unstable to replace the dollar at this point; the US government is far more stable than the EU, and that's the dollar's big asset.
BTW, the original article's claim that a decline in the dollar amounts to default on government debt is more than a bit unreasonable; if you're going to invest in foreign-currency-denominated debt, the risk of that currency falling vis-a-vis your own is a normal one. If the US was taking the easy way out of just printing money, you could call it something akin to dilution, but that's not the case.
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