The Dollar Plunges Further

[Vagos]

http://www.bloomberg.com/apps/news?p...refer=currency

http://biz.yahoo.com/ap/071107/wall_street.html?.v=52

Both links are top page on Drudge Report.

From the first link,
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French President Nicolas Sarkozy told a joint session of the U.S. Congress the Bush administration must stem the dollar's plunge or risk triggering a trade war.

``The dollar cannot remain `someone else's problem,''' Sarkozy said today on Capitol Hill. ``If we are not careful, monetary disarray could morph into economic war. We would all be its victims.''

``Those who admire the nation that has built the world's greatest economy and has never ceased trying to persuade the world of the advantages of free trade expect her to be the first to promote fair exchange rates,'' Sarkozy said. He repeated his concern that the Chinese yuan is unfairly undervalued.

[/ QUOTE ]

From the second,

[ QUOTE ]
Meanwhile, the dollar swooned amid speculation that China will seek to diversify some of its foreign currency stockpiles beyond the greenback and General Motors Corp. further dampened sentiment by posting a record loss tied to an accounting adjustment.



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Meanwhile, it looks the price of gold continues to soar, at about $830/ounce right now, which I believe is as high as it's been in over 25 years.

How relevant is all of this? How big of an issue will it bein the coming months? Discuss.

EDIT: Oops, didn't see the other thread related to this titled "US Can Thank China..." Even so, the first article I linked is new stuff and has some pretty strong words from the French President. But if you want to lock or delete the thread, go ahead.