It is possible that the
events in Iraq are the cause of the weaker
dollar
that has occurred in
the last day or two and that this is the beginning of a
big slide -- much overdue, of
course, in view of the trillion
dollar
trade deficit
A cheaper dollar has been the policy of the Bush Administration for quite
some time although they deny it. They see it as a way of increasing exports
and reducing imports. They are upset a China for pegging the Yuan to the
dollar because it hurts their policy. This may be a way of getting at China
but, of course, has the effect of making the Chinese more competitive in the
US relative to the rest of the world.
On Fri, 14 Nov 2003 08:34:20 -0500 "Lawrence DeBivort" <
[EMAIL PROTECTED]>
writes:
> Hi, Keith,
> As always, thanks for the stimulating and
thoughtful posts.
>
> So....what non-US currency do you think
will do best against the
> US$?
>
> Cheers,
>
Lawry
>
> > -----Original Message-----
> > From:
[EMAIL PROTECTED]>
> [
mailto:[EMAIL PROTECTED]]On
Behalf Of Keith
> Hudson
> > Sent: Fri, November 14, 2003 3:25
AM
> > To:
[EMAIL PROTECTED]>
> Subject: [Futurework] The big slide?
> >
> >
>
> It is possible that the events in Iraq are the cause of the weaker
> dollar
> > that has occurred in the last day or two and that
this is the
> > beginning of
> > a big slide -- much
overdue, of course, in view of the trillion
> dollar
> > trade
deficit. If it continues, then this will cause higher prices
> to
the
> > American consumer for those items that are imported and this
will
> occur
> > long before American business can take up the
slack. Greenspan
> might feel
> > obliged to raise interest
rates in order to prevent too steep a
> slide in
> > the value
of the dollar and this could then trip off the beginning
> of
the
> > personal credit card debt crunch -- again long overdue and in
need
> of
> > correction. We could now be in for bad
times.
> >
> > Keith Hudson
> > Keith Hudson, Bath,
England, <
www.evolutionary-economics.org>
>
>
> > _______________________________________________
> >
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