Here is an interesting piece from Reuters tackling the issue of whether a dropping dollar is a sign of America’s diminished financial standing in the international political economy. I have some problems with it such as mentioning that pricing oil in euros would cause the US more hardships, but it is a thought provoking read nonetheless:
The United States may have no military equals, but the challenges to its financial power have become impossible to ignore. A stark reminder came on Friday when the weakening dollar slumped to a record low against its main rival, the euro, after the U.S. economy recorded its fourth consecutive quarter of below-trend growth. The euro hit a record high of $1.3680. The strength of the dollar is more than just a matter of bragging rights. Experts say the consequences of its long-term decline could have deep significance – for average Americans and for the country’s position as an unrivaled global power.