:-D it was not even a question...just my rant...:-)...was just wondering how long can people go back to the same dead end?...how was it even remotely relevant to what we've been discussing here (I mean wars for oil)...instead of discussing real problems we have right now - increased violence in Afganistan and Iran getting close to getting a bomb...

Ira, I might be mistaken, but I too was under the impression that diminished dollar demand would drive down the value of the dollar, thus weakening our purchasing power...

There is NO difference which currency the trade is settled in.
It does not affect demand or supply for given currency.
Any of these transactions exist virtually along the entire trade chain until the delivery.
Whoever accepts delivery pays in local currency anyway.
The argument makes no sense.

$ is the "reserve currency" but only one of them..
additionally all commodity transactions are priced in $ for the sake of simplicity.
Due to highly turbulent $ value a lot of people want to shift away from using $ for all transaction into something else. Euro does not make sense, as it has potential of being just as unstable as US$.
This would have no effect on $ exchange rate, or pretty much anything else.
However, this is very unlikely to happen anyway as there is so much that's tied it into the existing system and creating a whole new "world currency" is not feasible.

***********.ft.com/cms/s/0/08ca4832-b36a-11de-ae8d-00144feab49a.html
Obama under fire over falling dollar

The falling US dollar is giving ammunition to the critics of the Obama administration and fuelling broader concerns about the potential erosion of America’s reserve currency status.
Republican politicians have highlighted the dollar’s slide as evidence of waning US power.

Sarah Palin, the former vice-presidential Republican candidate, onWednesday sought to link the dollar decline to rising US indebtednessand dependence on foreign oil. “We can see the effect of this in theprice of gold, which hit a record high today in response to fears aboutthe weakened dollar,” she wrote on her Facebook page.

Sarah Palin knows as much about the declining dollar, as I do about aerial wolf hunting.

имя Пайлин вызывает реакцию похожую у быка на красное...во всяком случае у нею хватила ума и смелости показать людям о death panels in healthcare reform bill...и демократы должны были оправдываться и пообещали внести изменения...
так что давай, Сара, не давай им сачковать...а по существу им сказать нечего...

and how exactly is is the healthcare reform bill relevant to the declining dollar? *-)

Democrats have proposed $500 billion in cuts to Medicare providers over10 years to help pay for the reform bill, arguing they would come fromwaste and abuse. They accused Medicare Advantage, a premium Medicareprogram administered by insurance companies as government contractors,of being too generous to insurance companies.
***********.washingtontimes.com/news/2009/sep/24/senators-spar-over-medicare-cuts-drugs/
and if they cut costs to the insurance companies, what do you think will happen to the benefits?...
yeah, it has nothing to do with the falling dollar...