At some point the dollar has got to come down.

A paper currency must be considered much like stock issued on behalf of the country that issues that currency.

Stocks rise for a few reasons...

1. the underlying financial strength of the issuing company and ability to increase revenues.

2. the potential for growth of the company and sector.

3. the short supply of the stock relative to demand.

4. manipulation.

5. Past performance.

Let's consider the USA as a company...

1. The USA has extremely poor financial fundementals now... their source of income, IE: tax revenue is dropping by the minute. The only way they will be able to meet their payroll is by further stock issuance (printing more dollars) and through debt.

2. Growth potential looks worse than anytime in the last 100 years or so. I think it's even bleaker than the depression, personally. After all, during that time the USA was more in the position of China... an emerging economic power, a lot of cost advantages in production compared to Europe... now there is more competition, US wages are too high to compete in manufacturing... it looks absolutely bleak. Furthermore, it really took a war to turn things around. A war on the scale of WW2 with todays technology would wipeout the planet so it's not possible.

3. There's a temporary supply shortage of dollars as everyone rushes to get their money out of foriegn markets but that will end very soon. With much more money printing and debt to be issued, the supply situation is about to turn very much to an oversupply

4. Manipulation: Perhaps they've manipulated the dollar up, knowing it will soon be deflated. Give it a higher starting point. However, soon manipulation will be on the side of deflating the dollar. How could any us company compete with such a high dollar? What's more, the US must devalue it's debt by way of devaluing it's currency.

I see this time much like a company that is inflating it's stock price just before a massive private placement. Soon as they get the money they'll let it fall, even hope that it does. Double the debt, halve the currency...

5. Past performance... The US has been the worlds rock for the last hundred years or so as was the Brittish Empire for a couple hundred years before that. All things must end though.