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One is that they overdo it, paying far too much for assets, sending the deficit into the stratosphere and triggering a run on the dollar.
ECONOMIST: America��s bail-out plan
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That reality last week triggered a run by dollar depositors on European banks with exposure to government debt prompting the U.S. Federal Reserve to make emergency loans to the European Central bank so it, in turn, could provide dollar liquidity to its member banks.
FORBES: Greece And The Crisis Of The Governing Elite
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The last Republican to run on a platform calling for a dollar "on a fully convertible gold basis" was Dwight Eisenhower, who cast the promise aside once in office.
WSJ: Seth Lipsky: The Gold Standard Goes Mainstream
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The crowning achievement of this eleventh-hour "Perestroika Bonds" salvage effort was to be a direct run on the U.S. capital markets, involving a dollar-denominated offering out of New York.
CENTERFORSECURITYPOLICY: Center For Security Policy
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Still, the Euro currency is on a bull run versus the U.S. dollar and investor sentiment toward the European Union is on the upswing.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Solidly Lower ahead of Key U.S. Jobs Report on Friday
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And even in the long run, the impact on imports of a drop in the dollar is weaker than that of a drop in income.
ECONOMIST: Why America's deficit is hard to turn around
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As demand for precious metal in the futures indexes and in physical gold bullion coins increases as the dollar weakens, there's been a run on the Mint.
FORBES: Magazine Article
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Last week, Europeans essentially saw a run on their banks as individuals and businesses sold the Euro and bought the U.S. Dollar.
FORBES: Still Not A Long Term Bear Market
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The effects of passed-on energy costs, as well as higher import prices stemming from a weaker dollar, have probably not run their course, so core inflation may edge higher in the months to come.
ECONOMIST: The economy