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Politics : Foreign Affairs Discussion Group
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To: Michael Watkins who wrote (150859)11/3/2004 12:38:41 PM
From: GST  Read Replies (1) of 281500
 
The USD is like a balloon -- kept aloft by hot air but weighed down by the dead weight of the debt. So far, hot air has been enough to keep it from falling severely, but the air is only as hot as the economy, and the weight of the debt is likely to increase substantially now that the electorate has opted for the "free lunch" crowd. The dollar has moderated in value, but the decline has not had much impact -- yet. However, a sharp fall over a relatively short period of time would be a shock both at home and abroad. Buckle up.
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