To: sea_urchin who wrote (22071 ) 12/2/2004 7:34:02 PM From: sea_urchin Respond to > Big adjustments in the dollar's real value are a certainty. The only questions are when, how and how much.321gold.com news.ft.com Either the US takes a severe recession (which will result in a major reduction in spending) or the dollar must take the fall. At this point, it appears almost certain, to me, that the Fed and the Administration are willing to let the dollar take the fall. This will mean ultimately higher interest rates, and then the question is whether higher rates will bring on a recession anyway. In the meantime, US consumers continue to spend while their saving rate drops to almost zero. It's a barrel of fun while it lasts!
