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IMF: US Economy in Freefall, Dollar overvalued
BBC Story ^
| JW
Posted on 09/26/2001 8:03:03 AM PDT by jwa3
http://news.bbc.co.uk/hi/english/business/newsid_1564000/1564612.stm
TOPICS: Business/Economy; News/Current Events
KEYWORDS:
US could see some inflation with weaker dollar.
1
posted on
09/26/2001 8:03:03 AM PDT
by
jwa3
To: jwa3
A scary tidbit in Yossef Bodansky's book about the first World Trade Center bombing concerned the counterfeiting of US currency. He claimed in TERROR that the Iranian government has been pumping millions and millions of top quality counterfeit dollars into the economy for a number of years. The conspirators claimed at the trial and it was verified during the investigation that the attack on the WTC was to destroy the Western economy by hitting at the confidence in world traders. Now with the successful hit at the WTC and the Feds pumping legitimate money into the economy, I wonder the same thing about inflation.
2
posted on
09/26/2001 8:17:38 AM PDT
by
wjeanw
To: wjeanw
Now with the successful hit at the WTC and the Feds pumping legitimate money into the economy, I wonder the same thing about inflation. The Fed took back $60B from the original $85B. Gold has dropped from $295/oz to $291/oz since. They tried to do the right thing but it just didn't wash with their Keyenesian models. Larrt Kudlow on this topic
To: jwa3
Some inflation but more domestic and less import purchases. Not all a bad thing. Keeps the money at home and leads to greater employment. Plus reduces the trade imbalance. Most other countries will end up buying dollars since we are the trade engine of the world. They do not like a weaker dollar, including the oil producers.
4
posted on
09/26/2001 8:43:39 AM PDT
by
beekeeper
To: beekeeper
Reducing the trade imbalance means the balance has to be maintained from some other source.Its all an income identity, so where do you think that the shortfall should be made up? Raising real rates to increase domestic savings? Contracting government spending or icreasing the budget surplus? The US needs in fact a larger trade deficit right now, and I hope it grows.
5
posted on
09/26/2001 8:48:29 AM PDT
by
habs4ever
To: jwa3
Standard press release from the IMF...devalue currency, ten raise taxes, then have an economy run by accountants and bureaucrats.Dollar doesn't need help to fall from the IMF, it can do so on its own.
6
posted on
09/26/2001 8:50:36 AM PDT
by
habs4ever
To: jwa3
Here's a link to the
article. To which my reply is the following:
British Society a Socialist Slime Pit - Rulers Corrupt Megalomaniacs.
To: habs4ever
Talking about buying US, since the dollar goes down and imports rise. Truth is, when that happens, most imports do not increase in price, since the importer would rather lose a little short term to keep market share. But it does help the domestic market by making US goods more competitive. as long as the US manufacturers keep prices in line. GM and others step on their feet often by not going for market share and instead go for the quick buck.
8
posted on
09/26/2001 2:29:07 PM PDT
by
beekeeper
To: beekeeper
You miss my point about the national income accounting identity.Money is fungible, and the idea that it stops at the border is silly, so trying to only buy US has nothing to do with the value of the currency, inflation, demand for dollars, trade balance or domestic output.Your way is to create an autarky, and how is that possible when the US dollar is the world's reserve currency? Don't fear a trade deficit, because the mirror of it is a capital account surplus.It is also wrong to dwell on inflation, when we suffer from a dollar monetary deflation.Dollars are scare relative to demand, which also helps to drive up the trade deficit.
9
posted on
09/26/2001 3:19:45 PM PDT
by
habs4ever
Comment #10 Removed by Moderator
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