Currency Competition

The dollar may lose it's number one spot as far as currency is concerned. It is slowly depreciating, and in 2002 alone, fell by 28% against the euro. With our country's current deficit, foreign central banks apparently have decreased in their purchases of American treasuries. Critics of the dollar state that if America's deficit continues in the current state that it is in foreigners are going to be less confident in our dollar, which will in turn mean less foreigners will be willing to deal with our dollar.

It took the dollar many, many years to replace the British pound. Do you think that our dollar will be replaced by it's main competitor, the euro? If so, what factors do you believe will play into the dollar depreciating? And also, how (if at all) will this affect the way we live our lives?