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COMMENTS:
If the dollar continues to fall it will become essentially worthless and other countries will become reluctant to invest in bonds etc, that finance the immense debt that Bush has run up. If this happens, it can cause economic collapse. There are already signs of China, Russia and other countries reducing their dollar exposure but not much is written in the US press about it. If you read other sources like the Financial Times you can see this. Way to go Bush people.
I don't know what to say about this. Is he trying to reduce the debt we have with China in an underhanded fashion, or is he just that damn stupid?
we are flooding the international markets with more worthless paper. hold on to your horses kids, the price of everything is about to skyrocket. Think that your $25/hour job is going to keep you safe? that'll be minimum wage in a couple of years..and your kids will still be starving..time for a revolution?
^Yeah, now we see why he is the chief economic advisor in the US....
If there is an intentional effort to keep the dollar falling then the Chinese should be implicated for tying the yuan to the dollar. The account defecit wouldn't be affected by the ministrations of the fed anyway. I don't think that there is a significant problem with this balance because all the foriegners are allowing Americans to consume way beyond our capability. The only way to stop the imbalance is through reduced consumption and increased savings which makes us all worse off.
Still think the FED is a good idea?
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