Friday, October 07, 2005

Twin Deficits Threaten American Supremacy!

Great research by Menzie D. Chinn of the Council of Foreign Relations. (I recommend you read the entire report in PDF file). The gist of the paper is that the huge current account and budget defecits are threatening the dollar, and thus American influence in the world. Similar to what happened to England at the turn of the last century when they became net debtors. If the world gets tired of supporting our hedonistic lifestyles, and pull the plug on buying treasures, our yields will soar leading to a severe recession, dollar decimation and loss of our world status. Also, if we go into recession, whether lead by housing bust, or followed by a housing bust, the world will stop buying our treasuries leading to the same result. The bottom line, in my opinion, is that Greenspan is in a box. He cannot lower rates. PERIOD!!!!!!!!!! He cares less about the overly indebted house "owner" than about defending the dollar. If the dollar is destroyed, the game is completely lost.

AG Must Defend Dollar

2 Comments:

Blogger SDS said...

How Many Feeds Really Matter: Part 2
Today at Web 2.0, Jim Lanzone, Senior Vice President of Search Properties at Ask Jeeves, updated his "What Feeds Matter" blog post from July using some new numbers obtained by mining the Bloglines database.
Hey, you have a great blog here! I'm definitely going to bookmark you!

I have a ##affiliate## site/blog. It pretty much covers ##Affiliate Program## related stuff.

Come and check it out if you get time :-)

6:57 PM  
Blogger Jerome Jackson said...

VeriSign Purchases Assets of Weblogs.com
VeriSign, Inc., the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced that it has purchased Weblogs.com and its ping service from ...
Find out how to buy and sell anything, like things related to music on interest free credit and pay back whenever you want! Exchange FREE ads on any topic, like music!

6:58 PM  

Post a Comment

<< Home