Today I read that Brazil are once again rattling the cage about the strength of their currency (or more to the point, the weakness of the US Dollar). Chile also are concerned about the strength of their currency, and are intervening in the market process by purchasing US Dollars (which strengthens the Dollar, while also weakening their currency at the same time).
This idea to try to out-run the US in debasing your currency is a fool's errand.
If they really want to compete on world markets through having a cheap currency, they should take a leaf out of the European Central Bank's book, and change what it is they're going to debase themselves against. The ECB realised that you can't out-run the US in debasing your currency. Instead, they choose to measure their currency, the Euro, against something other than the Dollar. Something more reliable and stable. Real money. Gold.
All the Brazilians and Chileans need to do, is change the layout of their financial statements. Include in there the marked-to-market value of their gold reserves in the assets column, and on the liabilities column list the issued currency promises. In this way, you gain as the US debases their Dollar (because the value of your gold will go up as a result of that process). But because you have tight control over how much gold you have in your reserves, you can issue and extinguish the amount of your own currency in existence to suit your own purposes. If you want to weaken your currency, no problem just print up some more Reals. If your currency is getting a bit too weak, perhaps the rest of the world is losing confidence in your responsibility levels or perhaps the cost of imported commodities is starting to choke your economy -- no problemo! Just stop issuing your currency any further and allow some of the existing debt to mature and not be rolled over. You are in control of your own destiny, rather than continuing to be tied at the hip to US profligacy.
One day, all currencies are going to be arranged in this way -- so why wait and keep playing the Dollar Game any longer?