Recall, Cina- who is the majoy debt holder on the trade deficit pegs its currency at a fixed rate compared to the dollar, so the major cause of out deficit (cheap chineese goods) will not be adressed by a lower currency.

Furthermore, as the dollar declines, major banks and governments (and private individual holders of dollars) will begin to dump dollars for euros, and market effects will devalue the dolar below its actual worth.

The economic theory behid all of this is the hoover doctrine: that the "untended garden" somehow, paradoxically, grows better than the tended garden.

Old Europe will end up with the reference currency. I fail to see how thats of benefit to the US.

Davin L.