There is an article about Paulson saying the dollar peg has served the Mideast well.
I read the article and really question it. The mideast has oil and would do well regardless of a dollar peg and if anything, the dollar peg serves the US well and has entitle the US to a level priviledge that no other country enjoys.
When other countries are buying your dollars, it makes your dollar stronger and increases the buying power. The US has enjoyed this bonus buying power for years.
I suspect that 2% treasury rate is going to change that priviledge big time. Well, also since foreign investors have lost their shirt over the US dollar decline I suspect the desire to hold US dollars has declined enormously. Actually, that priviledge has been changing, but I suspect it isn't over.