If the dollar truly does decline by 50% (quite a depressing scenario) it will be interesting to see the social and political effects of this. As everything becomes less affordable, and as we have to live with less, whom will we blame for our lower standard of living? Will political leaders have the courage to say, “If you want someone to blame, look in the mirror. We’ve overborrowed and overspent for years and years…now it’s time to reap what we have sewn.”

I suspect that the hunt will be on for a great scapegoat – someone else to blame for the new austerity. I have no answer…but it will be interesting to see the answer.