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ENGINEERING A US DOLLAR DEVALUATION?

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prediction : political :

ENGINEERING A US DOLLAR DEVALUATION?


[+] serious ballot by Cathexis
created Sun Feb 20, 05

TOPIC: ECONOMICS

In the middle of February, 2005, columnist Robert Novak wrote "Federal Reserve Chairman Alan Greenspan is rejecting nearly universal advice from financial experts that he should dramatically accelerate the decline of the dollar in order to reduce the U.S. international current-account deficit."

Note the phrase nearly universal advice from economists ... and this from Novak, a staunch Bush supporter.

Also, the New York Times reports that foreign purchases of Treasury securities plunged 75% in December. Finally, note that the Senate is about to fast-track the treacherous Bankruptcy "Reform" bill.

Setting aside the settings for a dangerous dollar collapse, do you believe these actions are indicative of the US Administration's willful and intentional decision to let the dollar fall, in an effort to mitigate deficit and trade problems?

Yes: Intentional effort to make dollar fall
No: No intentional effort to make dollar fall
Uncertain
Other (Comment)

Ballot #68149 : SEE RESULTS

Comment:

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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.
by FiddleFaddleOnLSD on Sun Feb 20, 05 10:06am [+]

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?
by Truthseeker013 on Sun Feb 20, 05 11:27am [+]

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?
by spanky on Sun Feb 20, 05 1:06pm [+]

^Yeah, now we see why he is the chief economic advisor in the US....
by CletuSlackedJawYokel on Sun Feb 20, 05 1:13pm [+]

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.
by xxxxxxxx on Sun Feb 20, 05 4:39pm [+]

Still think the FED is a good idea?
by thc2883 on Mon Feb 21, 05 5:47am [+]






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