I think Bob Hoye is making a mistake in assuming that the US$ will remain the "senior currency". His analysis seems to draw on periods in history when the US was in the ascendancy, a manufacturing powerhouse and a net savings nation. That is certainly not the case today. The baton is being passed to the East.

If there is to be deflation in the US, how does all the debt get repaid? What resources does the US have to sweat the debt off through hard work. Where are the factories, where are the savings, where is the desire to work hard and sacrifice? China not the US. That would suggest that the Yuan becomes the senior currency over the next decade, perhaps along with a basket of others. I cannot believe the US$ will retain its status as the world reserve currency when it is being openly debauched before our eyes.