The Decline and Fall of the US Dollar

During an economic summit in Russia world leaders expressed their lack of confidence in the Obama Administration:

http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_SUMMIT_TALKS?SITE=OHWIL&SECTION=HOME&TEMPLATE=DEFAULT

The following quotes express the concern over US economic policy:

• At the same time, Medvedev pushed against U.S. domination of financial
  markets by calling for new global reserve currencies to complement the
  dollar.
  
  Medvedev said new currencies will take a long time to emerge, but emphasized that the world will feel the growing need to hedge financial risks. "The main reserve currency, the dollar, has failed to serve its purpose," he said.
• 
  He added, however, that the creation of new reserve currencies should help distribute global wealth more fairly and also encourage economic leaders to pursue a more balanced economic policy.
• 
  The talk about global reserve currencies has been prompted by concerns in China and Russia that soaring U.S. budget deficits could spur inflation and weaken the dollar, debasing the value of their holdings.

We all know how important it is to President Obama to be loved by overseas society. It will be very difficult for him to win the hearts and minds of foreigners if they distrust his economic policies.