He's right. Fiat currency value is what the market says it is and right now the market thinks the dollar is the safest currency and is increasing in value. Other countries are trying to decrease their currency value in order to make their produced goods more attractive and they are able to do it.
Right now Bernanke is keeping interest rates low to try and stimulate the economy because we are a consumer nation based off of our currency. We can't devalue our money fast enough because everyone wants it, therefore our goods are difficult to sell due to exchange rate of the dollar. What this does is force a consumer economy where our job as a society is to consume products from other countries with devalued currencies. That's why it doesn't really matter if you have a job or not in the US as long as you're consuming. Welfare or 9 to 5 will accomplish that.
Who knows how long this game will hold up. I know our military, natural resources, intelectual capital, and land mass are all combined to be the collateral. You won't get past 1 to get to 2-4 so everyone will continue to play the game until we have another major economic meltdown and war. Just my $0.2
This post was edited on 3/1 at 3:17 pm