Jan 28

　　Immigrants to New York used to be greeted with signs like "Help Wanted: No Irish Need Apply." But these days, newcomers from Dublin are more likely to be mobbed by luxury property developers trying to hawk them $1 million condos. Manhattan, like other posh areas of America, is now full of homes meant for foreigners. The reason is obvious: from Rio to Riyad, dollar assets are a bargain.

　　The shift, which has been coming for several years now and will be much discussed at the World Economic Forum in Davos this week, is seismic. Since the end of World War II, the dollar's unique role as the de facto international currency has afforded Americans a tremendously privileged place in the world. We filled most of the seats on transatlantic flights, and bought second homes abroad. Our currency was prized by central banks. Countries pegged their monies to the dollar. The strength of the greenback, and of the economy, underpinned U.S. global hegemony in politics and culture. Big American banks like used to fund Third World governments—now those governments are buying Citibank on the cheaper.

　　Clearly, times have changed. The dollar—along with America's economic place in the world—has been on a well-documented downward spiral since 2002. Back then, a euro was worth 86 cents. Today, it buys $1.46. Of course, the euro's relative youth makes talk of "historic lows" easy to dismiss. More telling is that the U.S. Dollar Index, a futures contract reflecting the dollar's strength against six other major trading currencies, hit the lowest mark in its 35-year history just before Christmas.