Whose gonna pay for the massive deficits which have plauged Bush's America? You are:
Of course, the most critical link in the system is the United States and its mounting deficits, which have reached a staggering 7 percent of GDP. Pessimists have been warning about this for years to no avail. But after the April 22 meeting of the Group of Seven top industrial countries, the concluding statement had a surprise: the leaders acknowledged for the first time that currencies have to adjust to help rebalance the world economy. Put simply, the United States needs a cheaper dollar to pay its dollar debts. The rule of thumb is that the dollar has to fall 10 percent to cut the current account deficit by 1 percentage point of GDP, which means another 30 to 40 percent to cut the deficit in half. The trick will be for the markets and policymakers to produce a smooth decline, not a mad scramble out of the dollar. "We need to suck out liquidity without slipping into recession," warns Joseph Quinlan, chief market strategist for Bank of America.
That's right. They want to pay their dollar debts by making the dollar in your hand worth less.
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