Thursday, November 8, 2007

THE DOWNWARD SPIRAL NYTimes: "Stock markets plummeted and the dollar sank to a record low against the euro yesterday as investors worldwide grew skittish over rising oil prices and the prospect of a substantial economic slowdown in the United States. The most immediate trigger for the sell-off in the dollar, traders said, was a jarring signal that suggested China might shift some of its enormous hoard of foreign currency reserves - worth more than $1.4 trillion, primarily in dollars and dollar-denominated assets - into other currencies to get a better return on its money." ICH: "It's no secret that the dollar is on a downward spiral. Its value is dropping, and the Fed isn't doing a whole lot to change that. As a result, a number of countries are considering a shift away from the dollar to preserve their assets. These are seven of the countries currently considering a move from the dollar, and how they'll have an effect on its value and the US economy: Saudi Arabia, South Korea, China, Venezuala, Sudan, Iran and Russia." And it looks like Europe will suffer a lot too if they continue to support the dollar. But it is clear that the US will have to pipe down and stop its imperial interference. With Bush there is no prospect of improvement. Neither can much be expected from the Democrats. So count on an economic meltdown in the near future. Working for the yankee dollar? Forget it! 11:59:54 AM

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