[bishop]

Find a bank that will loan you money on the basis of just a business plan and I will show you a bank going out of business. Most startups are funded with credit card loans, personal savings or venture capital. Banks usually lend after you have a going enterprise.

regardless, the overwhelming majority businesses enabled via credit. personal savings is merely seen as collateral that the debt can be repayed. ala credit risk. what you receive in loans often greatly exceeds whatever savings you may have. that extends into all forms of loans as well, not just business. we are a credit society, not a savings society.

Production comes first...

it's debatable... nothing would be produced if there wasn't a demand for it.

Even Japan after all the intervention hasnt been able to stop the slide of the dollar? What then? Japan has a vested interest, they want to sell goods to the US. Other nations might not have such an interest, they might latch on the Euro or a gold denominated currency.

the dollar may have been devalued, but so too have all other world currencies. they've moved parallel for the most part. and price inflation, the real thing that matters, has been relatively stable for the past several decades, aside from spikes usually relating to oil prices. other countries are planning on filling their reserves with euros in about 3-5 years from now. although the euro will represent a small percentage of total reserves. it's going to be a loooong time before the dollar is replaced as the standard reserve currency.

if you balance the budget, the risk of countries moving towards other currencies will significantly diminish.

and virtually every developed/developing country wants to see our currency strong because everybody imports their products into america.

The theory here is that we are too big to fail and hence they will do all they can to prop up the dollar... The laws of supply and demand always rule, when there is a flood of dollars because of a negative trade imbalance, the dollar has to fall. You can halt the slide temporarily but not forever. Just like you cant defy the law of gravity on earth

as i said with examples, the demand for dollars is at an all time high. you're argument has no basis other than theory. in that doomsday scenario, if suddenly everyone stopped buying dollars, then yes, things would most definitely be bad. however, the reality is that that is not likely to happen in the slightest.

whenever the fed holds bond auctions, there's never any bonds left over. another good example that everyone and their mother wants our currency.