To the Point

The Decline of the American Dollar

Two weeks ago, Fed Chairman Alan Greenspan warned that foreign central banks won't keep loaning America money forever. The stock market, bond market and dollar went into decline. Since then, more headlines have predicted financial meltdown to greater or lesser degrees. The dollar is still the world's reserve currency even though it's now worth 30 cents less than the euro, and Chinese and Japanese banks still buy American bonds, even though they could make more investing elsewhere. Still, the US government goes on borrowing, while US consumers are spending like mad. How much longer can this go on? Will the trade and budget deficits lead to financial meltdown? What does it all mean for the pocketbooks of Americans? We talk about what Britain's Economist magazine calls "the disappearing dollar" with journalists, academics and economists. Making News: House Clears Intelligence Bill Today, the Senate's expected to follow the House and pass the biggest overhaul of US intelligence in decades. President Bush has agreed to sign it, but after weeks of debate and compromise, will it meet expectations? David Cloud, who writes for the Wall Street Journal, discusses the bill's strengths and weaknesses. Reporter's Notebook: Disney Hall Glare In less than a year, it's become known worldwide as a major LA landmark, and has given new meaning to the world "spectacular," but how much is too much? Sunlight glistens off the bright, undulating exterior walls of architect Frank Gehry's $274 Disney Hall. Now, laments Greg Goldin, architectural critic for Los Angeles Magazine, Gehry and LA County will likely spend $180,000 more to tone down the building's blinding patina.