How much longer will the American dollar fall before international investors dump them?

Answer 1

It won't be long because the government and the fed have been running the money printing presses 24/7 to help pay off all their expenses and interest on their debts. With all this monopoly money being printed up, it won't be long before a dollar isn't worth the paper it's written on. And who would really want to hold onto something as worthless as that? No wonder the US has a negative savings rate.

Answer 2

A terribly long way, I think. US governments have never nationalized foreign or private property, as many many other governments, from Mexico to Britain, have done.

The US has a stable society, a rule of law, established legal protections and established rights to personal property.
The rates of return you can receive from US investments are far superior, on a 20 year basis, than any other country.

(Btw, the US does not have a "negative savings rate." What people quote as "national savings rates" exclude retirement savings in personal pensions and the value of home equity, both of which are still well into the trillions. Adjusted for these, we're decent (not great) savers.)

I also don't know of another country that has a 16 TRILLION dollar Gross Domestic Product, either. Not Japan, not China, not the EU, no one. Only America.
Plus we're protected by the Atlantic on one side and the Pacific ocean on the other. Neither Canada nor Mexico could ever be a threat to us, either.
So, what scenario would cause foreign investors to flee the US? Nuclear War? Armageddon? Some sort of doomsday scenario, I think, would need to be involved.

Answer 3

Won't happen.

Oh, they'll diversify their international currency holdings. That's only prudent. But nobody is dumping dollars big time.

What makes you think that the dip in the dollar's value is a long term trend? You think our economy will be poor and the rest of the world will be great forever?

Much of the rest of the world depend on exporting to the US. To do that, they need the dollar strong and their currency weak. That means they will start taking measures to weaken their currencies soon, thus propping up the dollar again. That makes the dollar strong and the place to keep your money.

Answer 4

I don't think it will happen because we're trying to get more people to trade with us, that's why we're letting the dollar drop so far.

The economy needs a bit of a boost.

Answer 5

He who knows this will be a rich man as you can make some very profitable investments based on this knowledge.