There appears to be little debate left concerning the health of the US dollar, it is critical. The real questions that now should be asked are; how did this happen and can it fixed?

The answer to the first is much easier than the second. The wheels of motion for the US dollar collapse were put into motion long before anyone even realized there was a problem and it started with the Chinese. Clearly the powers-to-be in China have studied the United States, the Cold War and the means to building a strong, successful nation state.

First they began eliminating most facets of a communist economy. They rolled backed the isolation of Mao and begin embracing capitalism. Slowly they emerged as a manufacturing power. Most shrugged off the amazing assent as nothing more than small products, an economy based on gadget toys handed out in Happy Meals.

Since then what we have learned is the Chinese had something much more in mind and the plan is sitting before us. They were laying out the process of becoming an economic power and have done just that. Now they sit positioned and ready to challenge the United States dollar as the world currency.

How have they accomplished this? By taking advantage of the United States reckless spending. They have bought US Bonds, becoming our largest creditor. While in the United States most thought nothing of this as the US had been building debt, to only ignore it or pass it off, because the dollar was the worlds most coveted currency and a necessity for economic success. Going any further requires a long, complicated economic process, that most if few truly understand. But, think of it this way, if you have something everyone wants, you hold all the power.

Now the Chinese are trading in their US bonds for gold, liquidating their position in the dollar to some extent. They are also in the process of attempting to eliminate the dollar as the currency of choice, mostly by driving it into the basement.

This ends the Chinese segment of the lesson; the second part is all our fault. America is speeding up the process by building a stunning debt and wiping out an economy based on goods and shifting it to services and consumer based.

As the government needs more money, their answer is to print more. More money, the less it is worth. Second, they have driven down the interest rate in an attempt to stimulate an economy based almost solely on consumer spending. This of course drives down the value of US bonds and drives investors out of the dollar.

So you see, the falling dollar started with the United States, China is simply taking advantage. They may take a major hit at first, but if their push against the dollar works, the end result will be a clear shift in economic power.

The process is likely too far along for any immediate fix. Steps can taken, but they require large scale economic reform. As for the individual, buy gold and silver and invest in foreign markets. That's it folks, take it or leave it, but the fact is the US Dollar is getting pounded and never before has their been force such as China leading the charge.