I found this interesting video on youtube.com about the lecture given by noted economist Mr Venkatesh at an event in Chennai. His thoughts on globalisation and its effect will startle you. Its a very nice speech and it exposes one of the greatest myths of this century and that is that globalisation in its current form is good for everyone. He explains how and why America has delinked dollar from gold in 1970s when all currencies were supposed to be linked gold deposits. He explains how America has used up worlds savings to fuel its own consumption and that it has managed to do by simply keeping the dollar's value high artificially by creating demand for it. One way of creating artificial demand for dollar is through setting oil exchanges in its own backyard and allowing oil trade to happen only through these exchanges where the currency used is dollar thereby creating perpetual demand for dollar resulting in its high value.
He also cautions world against putting its savings in American dollar as it is supposed to fall wiping out the entire saving of the countries who would have invested in American G Secs and bonds. China is by far the largest creditor to America and its lending has increased to the tune of $1.3trillion and this is the money used by America to fuel its consumption. the consumption rate in America is highest at 107 %. Yesterday only Chinese premier came out officially with the concern on safety of the Chinese investment with America. Check out the news at wall street journal(http://online.wsj.com/article/SB123692233477317069.html).
God save America and God save all who have all their savings invested in dollar.