US Dollar Death Bed?

"In short, the dollar rules, to the great benefit of the U.S. Could it lose its dominion? It could. ... For real rates, compare the nominal return on short-term Trasury bills (less than 1.5%) with the rise in the consumer price index over the last year (5%). Someone sitting on cash in the form of T bills is seeing his wealth shrink (and this is before income tax is subtracted). Neither U.S. savers nor foreign central banks are willing to undertake this sacrifice forever. ... Foreign central banks purchase roughly 80% of all the new debt issued by the U.S. government. ... By my calculation, approximately 55% of the increase in corn since 2001 can be accounted for by the dollar's decline. ... By denying a direct link between the dollar and commodity prices, the Fed is signalling that it wants room to move interest rates and the dollar down", Steve Hanke (SH) at Forbes, 11 August 2008.

I agree with SH. I am still amazed USD interest rates are as low as they are.