How Can the Dollar Collapse?
“The collapse of the dollar means that everyone is trying to sell their dollar-backed assets, and no one wants to buy them, driving the value of the dollar down to near zero.” …About.com/US Economy Holdings that are owned by countries make this scenario even more sensitive. For example, if a country catches wind that a nation is selling off their dollar holdings or, if it is even thought that one may be planning to sell, this would be enough to start a panic sale. This is why countries would sell-off dollar investments in small amounts and over time.
