Holders of dollar assets in any form will sell to avoid losses.

Increased foreign demand for dollar assets can appreciate the dollar and raise the trade deficit, as in 1982-85.

It will reduce the flow of money into the country and the willingness of foreigners to buy dollar assets.

Foreign creditors would take the hit, finding their dollar assets suddenly worth much less in terms of their own currencies.

A single foreign investor can withdraw his dollar assets by selling them to another investor.

Investments from Japan in dollar assets more than tripled last year, to about $43 billion.

"This was taken by Japanese investors as a signal not to buy dollar assets for the time being."

Mexican holders of dollar assets preferred to see what options foreign banks and investors finally chose.

Foreign investors may refuse to invest in dollar assets.

"Why hold dollar assets on the chance that the United States will put the right policies in place when you can invest somewhere else?"