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Friday, September 21, 2007 |
Telegraph: "Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.
There is now a growing danger that global investors will start to shun the US bond markets. The latest US government data on foreign holdings released this week show a collapse in purchases of US bonds from $97bn to just $19bn in July, with outright net sales of US Treasuries.
The danger is that this could now accelerate as the yield gap between the United States and the rest of the world narrows rapidly, leaving America starved of foreign capital flows needed to cover its current account deficit - expected to reach $850bn this year, or 6.5pc of GDP."
I would like to see my Pension Fund pull out of their dollar holdings as fast as possible.
George W. Bush is the architect of this debacle. When Texans turn against Bush, you know he's a loser.
Salon: "Disillusionment with Iraq is smoldering even in the heart of Bush country, where military families have paid a heavy price."
11:19:21 AM 
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