Via Angry Bear:
Nothing complex about it, the US dollar has to depreciate to match current US productive output. Otherwise a long-term decline in private U.S. employment is almost inevitable. The reason the dollar cannot depreciate is because its value in international finance and transaction is much higher that its value as a measure of domestic productivity. This is most visibly represented when looking at foreign exchange reserves, though they represent but a fraction of the dollar's international usage. There was a reason that Keynes proposed the Bancor some 60 years ago, but there are also good reasons to believe it is not feasible within the capitalist nation-state system as currently constructed. More instability lies ahead, but opportunity, for as elites quarrel their ability to control events slides precipitously.
1'Reform the International Monetary System' - Zhou Xiaochuan, People's Bank of China