The Dollar continues to slide

The weakness of the US dollar continued today as the British Pound broke the $2.00 mark for the first time in 15 years.

Can this be the beginning of the end for the Dollar? US spending for the war in Iraq has been financed entirely by borrowing, and this borrowing has in turn been financed largely by credit expansion, effectively increasing the total number of dollars in circulation. The dollar has been showing increasing weakness against foreign currencies like the yen and the Euro. Its weakness against the pound is just one more sign that people around the world are beginning to lose confidence in the dollar as the world's standard for international exchange. The article sited here also notes that price inflation in Great Britain is starting to have a significant effect on the economy there. The Bank of England has set an official target for inflation at 2%. In other words, it is the official policy of Great Britain to reduce the value of the savings of all British subjects by 2% per year. A similar target has been set by the US Federal Reserve.