[LordOpie]

John Williamson, an economist at the Institute for International Economics who recently wrote a paper on global trade imbalances, said, "It's possible that there will be a gradual, orderly adjustment" in which the dollar and the trade deficit subside. "But the longer it goes on, the greater the risk that the contrary will happen -- that the dollar will suddenly fall, because nobody's willing to lend [Americans money] anymore, and other countries won't be expanding their demand at that time." The likely result of such a scenario, Williamson said, would be "world recession."

Have I had too much to drink? It's possible.

But what kind of idiot is this? How did he get a gig with the IIE? How the fvck would the world suddenly lose significant confidence in the US$?? We ain't Mexico or Argentina or some country that the IMF keeps hand-slapping. We're the US-****ing-A! If the dollar fell that much, the whol world would collapse into anarcy. Arg! What a retard.

http://www.washingtonpost.com/wp-dyn/articles/A41819-2004Jun14.html

As for the trade deficit, so be it. We (USA) need a slap in the face to get us competitive again. If the dollar needs to weaken more, then I say, screw you world, suck it up. When we start bring jobs back home, then we'll worry about the economic impact the dollar's having on you. Until then, I'd like a Home Theater DVD Burner for $59 to replace my VCR, can you hurry that sh:t up?

 

[Toshi]

hint: 1929.

 

[valve bouncer]

Where have you been Loopie, just about every currency in the world has been owning the US$ in recent times.

 

[LordOpie]

hint: 1929.

a near impossibility with Greenspan in charge and very unlikely without him considering the IMF and lessons learned.

Where have you been Loopie, just about every currency in the world has been owning the US$ in recent times.

Where have I been? What makes you think I haven't been paying attention? I do NOT think "just about every currency in the world has been owning the US$" is a bad thing. I think an adjustment was needed and is healthy.

 

[Silver]

Really, I'm surprised it hasn't happened more already, which is really a measure of the financial world's confidence in the US financial system.

Interest rates are really low here. Returns suck on "risk free" investments (gov't bonds, that sort of thing) but the money keeps pouring in from other countries. Sooner or later, something has to give, and what's been giving is the value of the dollar.