Yes, they are there to help you..(out of your money) Looks like the rest of the world is starting to sense the stench too>
LONDON The dollar tumbled to a historic low against the euro on Tuesday after a report of a sharp drop in foreigners' appetite for U.S. investments raised alarms about possible fragility in the U.S. economic recovery.
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The plunge in the dollar, which lifted the euro by more than 2 cents on the day to $1.1954, the highest level since its introduction in 1999, was given added momentum by fears of rising protectionist sentiment in the United States, analysts said.
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International investors' purchases of U.S. stocks and bonds dwindled in September to
(((((less than one-tenth the level of the previous month,))))
(I have been saying this would happen for the past 4 months)
the Treasury Department said. Because the United States imports far more goods and services than it sends abroad, the economy is highly dependent on funding inflows from abroad, and the size of the decline surprised traders on both sides of the Atlantic.
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"That was a bit of a shocker, actually," said Tony Norfield, a currency strategist at ABN AMRO, one of the biggest currency dealers. "Given the financing requirements of the U.S. economy, they can't afford that kind of a number."
It would be a good idea for all to read the full article
iht.com |
