THE funds' problems were compounded by rising oil prices and adverse currency movements, particularly the slide of the euro, which, along with a decline in the Japanese yen, further eroded dollar-denominated returns.
Sales at Random House fell 5.6percentt in 2007, hurt by the eroding dollar and weak consumer spending.
Today, the economic negligence of Washington and Wall Street, more than two decades in the making, has led to a multi-dimensional crisis in which this country faces an unprecedented convergence of problems: unprecedented debt, tumbling home prices, reckless money supply expansion, growing inflation, insufficient and expensive oil, and an eroding dollar.
Feckless dollar policy from Treasury has joined with impressive economic illiteracy at the Fed in ways that have eroded the dollar's credibility.
In the three years leading up to the introduction of euro notes and coins, the euro has not eroded the dollar's position as an international reserve currency.
Plenty of domestic funds did the same, of course, but the problem was compounded for foreign funds by adverse currency movements, particularly the euro's slide, that further eroded their dollar-denominated returns.
The 2008 financial crisis might have been expected to erode the dollar's global prominence.
Some specialists also say that high inflation could erode the dollar's value.
"The underlying current account deficit is slowly eroding the dollar's ability to stay stable," he added.
Analysts say the moves, if successful, could strengthen China's influence in overseas financial markets and begin to erode the dollar's dominance.
But for some investors, a swelling budget deficit and low interest rates are a recipe for future inflation, which would erode the dollar's value further.
