The Economist on what happens if the dollar’s fall means that it loses its status as the reserve currency for the world: “The dollar’s loss of reserve-currency status would lead America’s creditors to start cashing those cheques — and what an awful lot of cheques there are to cash. As that process gathered pace, the dollar could tumble further and further. American bond yields (long-term interest rates) would soar, quite likely causing a deep recession. Americans who favour a weak dollar should be careful what they wish for. Cutting the budget deficit looks cheap at the price.”

(Via Talking Points.)