[jaguar]

The idea behind US policy at the moment is that a weak dollar will offset the deficit. It's a flawed idea. It'll work but as the article points out, the cost will be huge - sharp recession and the dollar losing it's status. The US 'recovery' so far is based on asset price bubbles and a very dangerous level of consumer spending, both factors that will make and downturn much harder and sharper as interest rates rise.

What happens to the euro depends on what happens with the EU which at the moment is the new constitutional treaty, if that all goes to shit it's an open game.