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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (19930)	10/13/2004 7:35:32 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Fed Governor and sycophant Robert McTeer finally fesses up about reality, and then two days later resigns to take job at Texas A&M. McTeer Says U.S. Trade Imbalance May Cause the U.S. Dollar to Fall Rapidly Oct. 7 (Bloomberg) -- The record U.S. current account deficit will lead to an inevitable decline in the value of the dollar, a drop that might be rapid and provoke a financial crisis, Dallas Federal Reserve Bank President Robert McTeer said. In a New York speech, McTeer said a precipitous drop in the U.S. currency would lead to a big jump in interest rates. He offered no easy policy solution, saying he '' feels foolish warning about it'' because ''nothing bad has happened so far.'' The current account deficit, which reached $166.2 billion in the second quarter, ''is going to cause problems, but we just don't know when,'' McTeer said at a New York event hosted by Market News International. At some point, foreigners will slow their investments in the U.S., meaning capital ''flows will turn against us, and there will be crisis that will result in rapidly rising interest rates and a rapidly depreciating dollar that will be very disruptive,'' he said. ''But I don't know what to do about it.'' Just two days later we get the following report about a career change for Mr. McTeer: WASHINGTON (CBS.MW) -- Robert McTeer, the president of the Fed Bank of Dallas, has been named as the sole finalist for the chancellorship of the Texas A&M University system. Under Texas law, the Texas A&M System Board of Regents cannot vote on the nomination until Nov. 4 to allow for public comment. McTeer has headed the Dallas Fed since February 1991. He became known as the "Lonesome Dove" for being the only FOMC member to vote against Fed rate hikes in June and August 1999.