The dollar has been falling in relation to other currencies since May 2002, the dollar should continue to fall due to the inability of the Federal Reserve to raise interest rates until sustained growth is achieved.

1776 to 1983 M3 growth $2.5 Trillion in 207 years 1983 to 1997 M3 growth $2.5 Trillion in 14 years 1997 to 2001 M3 growth $2.5 Trillion in 4 years At the Current Exponential Growth Rate: We should have hit $10 Trillion by Dec 2003, however, in Sept 2003, the money supply began to fall. This may be an indication that the Federal Reserve's interest rate reduction stimulus measures have run their course. We may see increased printing of dollars and accelerated dollar depreciation in the months ahead. Thomas Jefferson's Warning Given the exponential growth of debt and the US money supply today, it is important to remember the warning of Thomas Jefferson in 1791, "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance. This issuing power should be taken from the banks and restored to the people to whom it properly belongs. If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered. I hope we shall crush in its birth the aristocracy of the moneyed corporations which already dare to challenge our Government to a trial of strength and bid defiance to the laws of our country" Thomas Jefferson, 1791 Money is Debt Currently, there is about 9 trillion of US dollars in the world but a total of $32 trillion in debt. If all the US debts were repaid tomorrow, there would be not be any US dollars in the world. All the dollars in circulation today, are backed up with debts, not precious metals. Therefore, our economy today is dependent upon more debt creation. George Washington and the Dollar It is unfortunate that the picture of George Washingtion is reflected on the $1 dollar bill today. His gift to us was a solid currency backed by gold and silver. He despised the false promises of fiat money, enough to encourage Congress to impose a death penalty for issuing the type of money he is now pictured on. How did our currency loose it's gold backing? For a brief history, Click Here Where are all the debts coming from? For more info Click Here