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Politics : Stockman Scott's Political Debate Porch

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To: Jim Willie CB who wrote (28066)9/18/2003 4:10:42 PM
From: RealMuLan  Read Replies (2) of 89467
 
"IMF Says Dollar May Crash

The IMF's Rogoff issued a series of warnings today, saying there is a significant possibility of a house price bust in some countries in Australia, the UK and even Ireland. The IMF warned of rising interest rates, which could imperil the global recovery if the rise was not driven by expectations of higher growth. Moreover, the IMF warned that the US current account deficit, which continues to grow as the Fed feeds more liquidity into the system, could result in a sharp fall once the gap is unwound. The IMF also stated that it feels the US dollar is still substantially overvalued from current levels. Most likely against the Asian currencies such as China's yuan, which from an academic standpoint should be one of the strongest currencies in the world given its enormous foreign reserve holdings and its trade surpluses."

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