GREENSPAN SEES A SINKING DOLLAR

Houston Chronicle ^ | December 12, 2006

[GodGunsGuts]

Dec. 11, 2006

Greenspan sees a sinking dollar

Bloomberg News

Former Federal Reserve Chairman Alan Greenspan said the dollar will probably keep falling because it's unlikely that international fund managers will continue to increase their allocations to the U.S. currency.

Russia and other oil-producing currencies are shifting their assets out of dollars toward the euro and yen, a Bank for International Settlements quarterly report showed Monday. Greenspan said the dollar, heading for its fourth annual decline in the past five years, will probably keep falling until the U.S. current-account deficit diminishes.

"It's imprudent to hold everything in one currency," Greenspan said Monday by satellite from Washington to a business conference in Tel Aviv.

[BonnieJ]

Didn't he do enough damage in all the long years of his reign, why can't he just be quiet finally and retire?! Every week he has some new dismal comments and predictions.

[Obadiah]

Not sure of all the macro impact of a falling dollar, but I'm reasonably sure that this is a trend that will not stop anytime soon. I think we will see growing strength in the Euro for years to come.

[weegee]

Sounds like a former president that keeps sticking his face out there to criticize the following administration.

What these people don't accept is they are no longer the ones in charge.

Retirement means you are don't have the job anymore.

[ex-snook]

Does that mean inflation or deflation????

[ContemptofCourt]

Every week he has some new dismal comments and predictions.

What Greenspan is saying isn't exzctly earth shattering..or did you miss Bernake saying the same thing yesterday?

[GodGunsGuts]

Actually, we should probably be thanking him. He's ticked off about spending and our massive deficits. These are pushing the dollar down, and, as he rightly points out, will continue to push the dollar down until we get our spending under control. I'm actually grateful for the warning so I park my money in currencies/commodities that will appreciate against a falling dollar.

[Petronski]

Does that mean inflation or deflation????

It's a crisis!

America's Flation Crisis is Outta Control!
We're all gonna die!

The situation is a million billion times
worse than originally thought!

[evad]

Once again..
Greenspudders speaks..
the market declines

[GodGunsGuts]

It means foreign goods will become more expensive. And it may also mean that our international dollars (in the form of currency reserves, etc) may start to find their way home. Finally, the USD is in jeopardy of losing its status as the world's reserve currency. This is not a good development no matter which way you look at it IMO. Our trading partners are not going to look kindly on the fact that we are shoveling our debt onto their depreciating dollar reserves (by not solving our massive deficits/cutting spending).

[jpsb]

"Free Trade" bump

[Petronski]

With flation barreling out of control, the most important thing to do is panic! Second most important is to buy more GOLD!

[jpsb]

I've read that a 30% drop in dollar value over the next two years is the best we can hope for. 30% means $4+ gas and lot's of inflation.

[Paul Ross]

Surprise, surprise.

It's especially imprudent to hold U.S. dollars when "our" government won't publish the M3 numbers anymore.

Guess the Free Trade party for the Import Lobby has finally seen the writing on the wall.

But they won't acknowledge their complicity in bringing about the next great depression clearly in the offing.

As Phyllis Schlafly's Eagle Forum, and James Plummer's Liberty Coalition reported:

ACTION: Don't let them hide inflation

By not reporting M3 the Fed is telling us they're going to give us much more inflation. If the Fed doesn't want us to know how many dollars there are, how valuable can the dollar really be?

The Fed claims M3 tell us nothing more than M2, a narrower measure they also publish. But M3 has risen nearly twice as fast as M2 over the past year. The Fed makes the silly claim that M3 isn't worth the cost to study and publish, as if the cost of compiling statistics was the cause of our fiscal woes. M3 is in fact the one statistic foreign bankers rely on most. Who will invest in America if they don't trust our money?

Sign Petition to Congress: Don't let the Fed hide its “basement counterfeiting”

H.R. 4892, the Sunshine in Monetary Policy Act. Current bill status.

[subterfuge]

Staglfation!

[A. Pole]

"It's imprudent to hold everything in one currency," Greenspan said Monday by satellite from Washington to a business conference in Tel Aviv.

I see

[jdm]

The situation is a million billion times worse than originally thought!

LOL!

[Paul Ross]

the most important thing to do is panic!

I know you are being facetious....but when we are confronted with a government which lies not just to us, but to itself, and is believing its lies about the status of the currency...then it a good old-fashioned panic which blows the rascals out of their little Federal sinecures might be just what the Doctor Ordered.

[subterfuge]

I mean, stagflation!

[woofie]

I had a flation once.....it let me down