The dropping US dollar

In further evidence of the decline of the US economy. The US Dollar hit a 12 year low against the Japanese Yen, settling at around 100Y/1$ (virtually a one to one exchange ratio). Meanwhile, the Euro hit a record high of approximately 1.56E, according to NHK news tonight in Japan. According to the reports companies were preparing for massive profit losses due to shrinking exports. Japan is heavily dependent on international trade, and heavily effected by the US economy. Businesses are already suffering losses and decreased foreign investment due to the sub-prime mortgage crisis, and oil trading at over $100/barrel.

For those of you not paying attention this is going to have massive repercussions. For the people who always talked about the "domino" effect of communism, or the more recent "reverse domino" justification for spreading democracy in Iraq continuing to the middle east, they are about to see in near real time an "economic domino" effect. Perhaps, ripple effect or feedback loop would be more accurate. I am no economist, but the global concern about the destabilizing is palpable. US economics is headline news almost daily. As economic indicators continue to point towards a recession, the global consequences are becoming very real.