This may be the most serious threat the dollar has ever faced. The fundamental economic law of supply and demand ensures that the bourse means hard times for the greenback. This explains why the Bush administration is cobbling together a feeble coalition of European allies (England, France and Germany) to push a resolution through the Security Council expressing their serious concern about Iran's alleged nuclear programs. ... "David Bloom, a currency expert at HSBC, said the dollar was vulnerable to a steep sell-off as investors begin to refocus on America's yawning current account deficit, now 7% of GDP". (UK Telegraph) Just to add some perspective to this topic; Argentina's economy collapsed when its trade deficit reached 4% of GDP. The US deficit is at an unprecedented level.
Iran Persia economy USA war oil Middle East