April 3, 2008 at 7:28 pm #53835
This is an article written by two gentlemen who co-founded the Center for Economic and Policy Research at Havard University.
They wrote the article in Spring 2005 re. the then increasing and crippling debt of the USA and commenting how the US will probably solve the problem.
This, by taking advantage of the fact many countries decided to hold their reserves in the ‘safe dollar’.
It makes interesting reading especially now with the benefit of hindsight re. the weak dollar, and makes me wonder if it has indeed all been just part of a ‘clever’ longterm plan to solve their debt crisis, regardless of who it hurt.
Possibly a bit tame for those involved in the world of finance, but it certainly opened my eyes.
What has it to do with Spanish property insight? Answers on a postcard please because I don’t know. 😉
Just thought it interesting.
April 3, 2008 at 7:54 pm #80479
Written with you me and many others in mind.
Well think we need to leave the higher City boys to say it their way but found this very interesting
Just Frank 8)
April 3, 2008 at 8:20 pm #80481
Frank – I must say I had to make a strong cup of Earl Grey to help concentrate my mind while reading it.
If the US was instrumental in the dollar’s demise, to what extent has it affected/ruined these other countries economies?
We all know how much (little) they care about the rest of the world on other matters (Kyoto etc.) when it comes to self-interest.
April 4, 2008 at 7:22 am #80484
This simple arithmetic should demonstrate the urgent need for governments to diversify their reserve holdings away from dollars. As Alan Greenspan said in a slightly different context, anyone holding large numbers of dollars at this point “must be desirous of losing money.”
Many institutions are buying the Euro in preference to the Dollar. This is why it (Euro) is so strong against many currencies, including the Pound Sterling. 🙁
April 4, 2008 at 3:18 pm #80519
Government’s always succumb to inflating away the real value of debt. It’s a fact of life. Inflation is like an extra tax on savers, and we know how governments like tax.
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