The question of the dollar.

Whether people like to acknowledge or not, the question of the dollar IS a political one when all is said and done. By now we understand the variables that govern the economy. And we know the outcome from experience. In the Depression of 1920, the economy was restored by cutting government spending and cutting taxes. The resultant prosperity that followed was named the Roaring Twenties. It was ended by a Stock Market bubble, fueled by low margin requirements and excessive speculation. An economic correction (exacerbated by protectionist tariffs and the raising of taxes), followed by a Stock Market crash, ushered in Roosevelt and Munchausen by proxy economics. The adoption of graduated income tax took the money from the hands of the entrepreneurs (who were best at producing income) and let it be spent on government handouts and make work that was low in efficiency. Roosevelt never got the US out of economic Depression, just made it possible for people to endure it. The Depression ended when WWII forced the govt to end 'mark to market' so the war could be won. Jimmy Carter tried to relive the Rooseveltian years and produced stagflation. Bill Clinton knew better.
The Obama regime is embarked on restoring the Rooseveltian economics and finish the job of destroying capitalism. Their tool is once again 'mark to market' to produce enough deflation to mask the effects of devaluing the dollar. And the dollar is being devalued to obtain control over industries and alleviate the suffering that Obamanomics brings about. The Chinese and Indians are no fools and they do not like the idea that the Obama regime is planning to destroy the value of their dollar reserves. And that is what is at the bottom of Asian nations scrambling for a new reserve currency.