DislikedThat wouldn't explain why the dollar has fallen from almost 124 to 9x.00s though....Ignored
Not sure how you can claim "minor countries" are fleeing the USD when my country (Australia) just sold almost a billion AUD/USD onto the OTC forex market. i.e. they BOUGHT USD.
As you point out, US is the worlds biggest importer, therefore all countries want to have a weak currency against the USD, this involves buying USD by getting your countries central bank to sell your currency on the market and buy USD in return.
For U/J to travel from 124 to 90 involves 2 parties, someone to sell USD and buy JPY but also there has to be someone buying USD and selling JPY to the buyers!
So all those USD haven't simply vanished in thin air, they are all still there, in fact there is more of them than ever, and someone is buying them.
Make no mistake, all those countries with currencies that are soaring against the USD right now are feeling the pain. I know for example, Toyota in Japan is standing on its last legs being mauled by strong JPY, and as another example the Hollywood production of the Green Lantern movie just moved from Australia because the currency is too expensive now!
PS: Mike Shedlock (who is an actual economic analyst I respect very much) disagress with you greatly about the idea of JPY being able to pay back their national debt. Here is a snippet of one of his rants
QuoteDislikedMight the US dollar blow up? Yes it might. But so could the RMB if China floated it, and so could the British pound. No one seems to see the crisis brewing in Japan with a huge demographic problem, a shrinking population, falling exports, and no way to pay back its national debt.
. Talking about japan, the new government knows soon Japan is going to become a net importer nation rather than an exporter. 
