Proud White Guy
11-14-2004, 05:00 PM
http://story.news.yahoo.com/news?tmpl=story&u=/latimests/20041114/ts_latimes/dollarsdeclineisreverberating
http://brillig.com/debt_clock
Amid worries about bulging U.S. budget and trade deficits, the greenback dropped last week to a record low against the 5-year-old euro, a 12-year low against the Canadian dollar and a nine-year low against an index of major currencies. Many analysts don't see anything that will stop the decline.
A cheaper dollar reduces the value of American securities, making them less attractive to foreign investors. That could eventually precipitate what Robbins called "the doomsday scenario" — Japan and China not only refusing to buy U.S. bonds, but selling some of their $1.3 trillion in reserves.
The only way Uncle Sam could then find new customers for its IOUs would be by raising interest rates. And although higher rates are good for savers, they would be disastrous for a country weaned on cheap credit.
In August, the most recent period for which there's data, foreign private investors sold $2 billion more in U.S. stocks than they bought, the Treasury said. Meanwhile, they dumped $4 billion more in government bonds than they purchased.
"A run for the exits could happen any day, that's for sure," said C. Fred Bergsten, author of "Dollar Overvaluation and the World Economy" and director of the Institute for International Economics, a Washington think tank.
This week, Congress will have to raise the government's $7.4-trillion debt ceiling so it can borrow more money. According to the nonpartisan Congressional Budget Office (news - web sites), by 2008 nearly 10% of the budget will be devoted to interest payments.
Much of the second-quarter shortfall was in goods: for every $20 in products American manufacturers sent overseas, U.S. consumers bought $36 in foreign electronics, cars and other items.
Looks like the shits about to hit the fan,all of you with adjustable mortgage rates better head for the hills.
The Gubbament is borrowing all the money,and your gonna pay for it,via inflation,and higher interest rates.
I know what else is new.
I just can't help but wonder how long this little borrowing party is gonna last
The Jews at the Federal Reserve have us right where they want us
http://brillig.com/debt_clock
Amid worries about bulging U.S. budget and trade deficits, the greenback dropped last week to a record low against the 5-year-old euro, a 12-year low against the Canadian dollar and a nine-year low against an index of major currencies. Many analysts don't see anything that will stop the decline.
A cheaper dollar reduces the value of American securities, making them less attractive to foreign investors. That could eventually precipitate what Robbins called "the doomsday scenario" — Japan and China not only refusing to buy U.S. bonds, but selling some of their $1.3 trillion in reserves.
The only way Uncle Sam could then find new customers for its IOUs would be by raising interest rates. And although higher rates are good for savers, they would be disastrous for a country weaned on cheap credit.
In August, the most recent period for which there's data, foreign private investors sold $2 billion more in U.S. stocks than they bought, the Treasury said. Meanwhile, they dumped $4 billion more in government bonds than they purchased.
"A run for the exits could happen any day, that's for sure," said C. Fred Bergsten, author of "Dollar Overvaluation and the World Economy" and director of the Institute for International Economics, a Washington think tank.
This week, Congress will have to raise the government's $7.4-trillion debt ceiling so it can borrow more money. According to the nonpartisan Congressional Budget Office (news - web sites), by 2008 nearly 10% of the budget will be devoted to interest payments.
Much of the second-quarter shortfall was in goods: for every $20 in products American manufacturers sent overseas, U.S. consumers bought $36 in foreign electronics, cars and other items.
Looks like the shits about to hit the fan,all of you with adjustable mortgage rates better head for the hills.
The Gubbament is borrowing all the money,and your gonna pay for it,via inflation,and higher interest rates.
I know what else is new.
I just can't help but wonder how long this little borrowing party is gonna last
The Jews at the Federal Reserve have us right where they want us