It could very well lead to a doomsday scenario - our country’s economy has no real foundation any more, and we are saddled with huge debt.   The Iraq War for oil is an extension of a desperate economic policy, and given the myopia and stupidity of the current administration and quite possibility the next if McCain is elected, war will continue to be our economic weapon of last resort.
  
Military might is the last asset we have in the world economy, and with a third Bush term, I’ll wager we use it even more.

MJM stated: “china is not going to be fed up with the American dollar anytime soon”

Undamned Yankee replied: “Of course, the Chinese will take Bush Dollars”

So we agreee that if Walmart continues to pay the chinese in american dollars, china will continue to accept walmart’s american dollars….. but your caveat: as long as the american dollar remains an exchangeable currency. 

So you’re implying that Bush’s (undeniable) mismanagement of the economy will devalue the dollar so much that it would no longer be an exchangeable currency…..  I think that’s hyperbole to say the least.  You’re hinting at a straight up global doomsday scenario. 

The precipitous decline of our currency against other world currencies has only happened one other time in our history - during the Reagan years, when the US went from the world’s largest creditor to the world’s largest debtor.  Both the Reagan and Bush the Lesser eras are characterized by profound negative impacts on American workers and the larger American society.  

So I really don’t get your point, MJM.  Of course, the Chinese will take Bush Dollars, just like they take Mexican Pesos, or any other exchangeable currency.  But the world has spoken pretty clearly - American currency - and therefore America -  is trading at a huge discount to what it once was, and there is no real end in sight.  Your point that the Bush Dollar is the world’s currency is superfluous - if you were paid in Euros or Pounds, the recent oil price increases are mitigated by the rapidly declining Bush Dollar, since your Euros and Pounds buy more Bush Dollars than ever before.  Endless war, asinine energy policies, never-ending trade deficits, and deficit spending are eroding our economic present and future.  

I really don’t see this changing.  the best part of our political system is one administration can only mismanage for 8 yrs and the mismanagement becomes the focal point of the following election.  1980, 1992,  2008…ect

“The American dollar isn’t worth much these days due to some massive fiscal mismanagement in this country.  If countries like China realize this and start to dump their Dollars, we are all doomed.”

This is, of course, true, but it doesn’t harm the American as much as it could do, because the US dollar is still more or less the World’s standard, the currency most often used in international transactions. I guess things would change considerably when countries would decide to accept (for instance) the euro as the standard, as the currency par excellence for international transactions. I’m not a financial expert, so correct me if I’m wrong