The US dollar will recover eventually and it will remain a dominant world currency. The only way this would not occure is if oil was not sold in USD. Should that happen and the majority of the world producers change to any alternative currency, then that is when the USD will be on it's death bed - even then I am sure it would be resusitated with expert medical care.
What will happen however is that the world banking community will be much much more cautious about re-entry into the American sub-prime markets again and this will have a knock on effect in the USA.
You of the retired banker Carl so I will say no more and try not to "teach my Granny to suck eggs" as the saying goes
