As Budget Deficit Grows, So Do Doubts on Dollar

As Budget Deficit Grows, So Do Doubts on Dollar
"In a new twist to an old refrain among economists, who have long worried about the effects of growing U.S. debt, they say that the huge liabilities the U.S. is taking on to dig its way out of crisis could ultimately undermine faith in the dollar.
'There has been a lot of disappointment with the way the U.S. credit crisis was handled,' says Claire Dissaux, managing director of global economics and strategy for Millennium Global Investments Ltd., a London investment firm specializing in currencies. 'The dollar's loss of influence is a steady and long-term trend.'
On Tuesday, the Obama administration added fuel to concerns about the dollar, saying the U.S. will run a cumulative budget deficit of $9 trillion over the next 10 years, $2 trillion more than it had previously projected."