Russia: Not Happy That; The Dollar is Melting!
Hello,
I was drinking my morning cup of coffee & thinking again about the American Dollar. I have written several articles about the Demise of the Dollar! I have now just read that the Canadian Dollar is worth more than the American Dollar. I think that I read some where that the Australian Dollar is worth the same as an American Dollar.
Seems to me that the world currencies are adjusting to be more equal with each other.
This downfall of the Dollar is causing Russia to have inflation problems. To the Russians; "It's clear that Washington is not going to do anything to solve the problem that it has created. As former U.S. Treasury Secretary Connally also famously said, "The dollar may be our currency, but it's your problem." Especially in an election season next year, the United States is focused on how to minimize recessionary risks -- hence lower interest rates and a bigger fiscal deficit."(click: read more)
"Again, Russia is not alone in this predicament. Late last week, discussions within the Gulf Cooperation Council ended without any action to break the peg to the dollar, which places those countries in an identical inflationary predicament as Russia. Asian countries face similar concerns.
It's clear that Washington is not going to do anything to solve the problem that it has created. As former U.S. Treasury Secretary Connally also famously said, "The dollar may be our currency, but it's your problem." Especially in an election season next year, the United States is focused on how to minimize recessionary risks -- hence lower interest rates and a bigger fiscal deficit.
So will Russia and its economic partners continue to play the victim in order to maintain the dollar as the monetary anchor of the international financial system? Perhaps the time has come for Moscow to help organize a new cartel. No, nothing to do with energy, but rather a "sound money" cartel among those countries that collectively wish to reassert monetary stability. Of course, as we all know, this is just wishful thinking.
Martin Gilman, a former senior representative of the IMF in Russia, is a professor at the Higher School of Economics in Moscow." (Moscow Times)
The Horizon looks bad for the American Dollar! Looks like America has some recession years coming up. I remember the past well.
Kyle
comments always welcome.
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Hi Kyle,
The current drop in the dollar is tied to the sub prime mortgage crisis, which, in turn was a result of a lax regulatory environment in the US financial sector. This can all be laid at the door of the Bush administration.
President Bush announced a plan to freeze the interest rates on some adjustable rate mortgages this week. His plan is too little too late.
Hopefully the next US President, whomever she will be, will do something effective about this, and every other mess that Bush is leaving us.
Hey rotus,
Thanks for coming by.You are on the right track. Now just figure out how to correct it. Doesn't Bush listen to you? He never listened to me.
By the way what do you mean; "Hopefully the next US President, whomever she will be," Don't tell me you think that the country would put another Clinton in the White House!
Kyle
Bush must be deaf. He never hears anyhing I say. I think it's likely that Hillary or Barack will be the next President, yes.
Hey Rotus,
That is cool. I have to think about that some before I say to much. I never liked Bill Clinton! But we all know that Hillary ran the Country when he was president!
Kyle