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Originally Posted by J. Abizeid  As you noted, the dollar’s value declined continuously for the first seven and a half year of the Bush administration (from 0.92 to 1.60). The decline was caused by the lack of confidence in the US ability to pay off the debt that Bush kept on accumulating irresponsibly. He took over a balanced budget with a surplus from Clinton and turned it into a record high deficit. The dollar was supposed to collapse completely during the summer jut like Lehman Brothers did but that was not in the best interest of all the foreign investors such as China. Europe and the Gulf States; so they set up a dollar rescue system that has been active since August until they salvage as much as they can from their investments. The $700 billions bailout was part of that deal. Today, the dollar is on a temporary life support. Its artificial value is a cancerous growth that will eventually kill it. The fundamentals of the US economy have not changed. Actually, it got worse since last August. It turned into a black hole sucking into it the rest of the world economies. The world is finally reacting. With today’s reality, it is in the best interest of the US to devalue the dollar by printing a lot more of it and start paying Bush’s debt. That will also help its exports. The world is no longer willing to pay the US bills. That’s the message that Bush will get tomorrow from the world leaders in the economic summit. http://news.yahoo.com/s/nm/20081113/bs_nm/us_financial_summit French President Nicolas Sarkozy</SPAN> sounded an aggressive note on Thursday as he prepared to head for the summit. "I am leaving for Washington to explain that the dollar, which after the Second World War was the only currency in the world, can no longer claim to be the only currency in the world," he said. "What was true in 1945 cannot be true today." Federal deficit balloons on bailout costs - MarketWatch WASHINGTON (MarketWatch) - The U.S. federal government deficit soared in October to a record $237.2 billion, as the government invested more than $136 billion in various bank bailout programs, the Treasury reported Thursday. EADS Swung Back To Profit In 3rd Quarter, Buoyed By Rising Dollar - MarketWatch EADS Swung Back To Profit In 3rd Quarter, Buoyed By Rising Dollar |
First, when did Bush listen to anyone. He simply only does what he likes.
Second, it is true that the printing machines are working non-stop to pay back the debt. But the money being printed is the very same money which evaporated from people's pockets all over the world and went to "money heaven". So in essence what is happening is a dirty trick which pays back the US debt by not only or mainly the US taxpayer, but by the wealth which has been accumulating in the past five years in China, Russia and the Gulf. Look back at Bush's press conference in NY yesterday, analyse every word, every body gesture and you will see and hear what I am talking about.
I have no doubt in my mind that after all is said and done, the US will emerge a victor in the financial markets and the losers will be China, Russia and the Gulf.
Having said that, your posts are enlightening me tremendously to the possibility of a game involving the US Dollar. While I see that the Dollar might incur a steep and quick loss, I disagree with you about the timing. I start from the premise that this is a dirty trick. In order for the trick to work
on the maximum amount of people, it has to come as a surprise, it has to come in a time when people least expect it, and it to come in a time when a maximum amount of people have taken up positions on the US Dollar. So, this trick would only work in 6 months, or one year, or 2 years. Meantime, I see the Dollar becoming stronger to build up the false feeling of a refuge currency.