Here is a great artilce about the real effect fo the falling dollar on worldwide stability.

Falling Dollar, Rising Debt -- Viewpoints | EPI

Here are some select quotes from the article which ring loud and clear.

"Economists at Goldman Sachs predict that if we continue on our current trajectory, our foreign debt will amount to 40 percent of GDP by 2006. "

"Our current account deficit now runs about $400 billion a year, and the Goldman Sachs number crunchers estimate that just to cut that in half, the dollar would have to fall an "astonishing" 43 percent against the currencies of countries we trade with."

"At present, with every 1 percent rise in our national income, our trade deficit grows by 2 percent."

"Our politicians' indifference to an out-of-control foreign debt is in striking contrast to their fretting about projections that the Social Security system might have to start borrowing money 40 years from now. "

"Thus, according to the Washington Consensus, it's better just to wait and hope that the inevitable dollar implosion will occur on someone else's watch. And who knows, maybe the laws of economics and human nature don't apply to America after all. "