QUESTION:   Why is the U.S. Dollar falling drastically?
ANSWER:       Simple.  Incessant inflation caused by excessive creation of money out of thin air.

The situation is exacerbated by rampant borrowing and spending.  The monetary system is an upside-down pyramid scheme, and the debt is now so large, and spending and borrowing is so out-of-control, collapse of the pyramid is most likely inevitable.

http://finance.yahoo.com/currency

NOTE:  Rising demand of GOLD is raising GOLD prices world-wide, and most other currencies have inflation too, but the jump in price in U.S. Dollars is much larger than other major currencies due to the falling U.S. Dollar.

$U.S. Dollar price increase = 293% increase in 5 years (from $335 to $980):

EURO price increase = 198% increase in 5 years (from 320 EUR to 633 EUR):


British Pound price increase = 233% increase in 5 years (from 210 GBP to 490 GBP):


Canadian Dollar price increase = 181% increase in 5 years (from 540 CAD to 975 CAD):


Australian Dollar price increase = 193% increase in 5 years (from 545 AUD  to 1050 AUD):

 

06-JUN-2008 Oil futures: $138.54 per barrel

Prices (above) adjusted for inflation (in 2008 U.S. Dollars)