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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (8057)	2/26/2008 12:59:40 AM
From: SliderOnTheBlack	Respond to of 50182

re: The G-7 Dollar Stabilization Agenda... Dollar stabilization has been at the top of the G-7 agenda for the last 6 months. Here's the headline from the prior meeting in Washington: ============================================================ Slumping dollar puts G7 back in spotlight. Meeting this weekend in Washington the most important in five years. By Greg Robb, MarketWatch Last update: 3:00 a.m. EDT Oct. 15, 2007 WASHINGTON (MarketWatch) - For the last five years the global economy has sailed along, allowing meetings of the Group of Seven finance ministers and central bank governors to take place in relative obscurity. But with the financial market turmoil and the slumping U.S. dollar now on center stage, the G7 will again be thrust into the spotlight on Friday as ministers have their closed-door meeting in Washington. ============================================================== The dollar has fallen further since the Washington meeting and dollar stabilization was still at the top of their agenda... so, when Bernanke & Paulsen had it pulled from the agenda - it was bascially like throwing in the towel. Competitive devaluation of the U.S. Dollar is now both reality and official policy. The G-7 knows it, and the gold, oil, and commodity markets know it. (Now someone just needs to tell Larry Kudlow). Given the $150 Billion dollar stimulus package, another .50bp rate cut already priced in by the market, soaring deficits, and run-away inflation - the charade had to end. Can you imagine how demeaning it must be for Paulsen to have to stand before the media, let alone G-7 bankers, and try to talk up the dollar with a straight face? Charade over. The market and the G-7 have accepted that the U.S. is going to do whatever it needs to do - to prop up the U.S. markets and stimulate the economy.... dollar be damned. Until the U.S. get's it's fiscal & monetary house in order... the market isn't going to listen to anything Frick & Frack have to say about the dollar. The market has spoken: S.O.T.B.