Under Bush Dollar Falls and Transnationals Profit While American Consumers eat it.

While the economic shift likely would draw out some winners in the U.S. economy, such as companies that sell goods and services overseas, it also would likely sharply reduce America's purchasing power.

The dollar, which began to weaken broadly in early 2002, has fallen more than 50 percent from its October 2000 trading peak against the euro. It recently has come close to hitting its record low against the 13-nation currency and is near a 26-year low against the British pound.

"Over the long term, having your currency fall 50 percent is another force for change in the economy," Brown said.

Initially, the changes could appear mild, even pleasant. U.S. companies that sell overseas can reap big gains when they make sales in a stronger currency and then translate that back to dollars. This past week, International Business Machines Corp. said its first-quarter revenue rose 7 percent to $22 billion. However, without the benefit of converting foreign revenue to dollars, sales would have risen only 4 percent.

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Still, while some sectors of the economy might benefit, many observers expect the longer-term ramifications will pose difficulties for the U.S. economy.

"If you want to take over companies or if you want to expand it makes it harder," said Merk, adding that U.S. assets become less-expensive targets.

"You can't defend yourself. Your currency is worth less in an international arena, and we're in a globalized world. You're going to be up for sale. All U.S. assets are up for sale," he said.