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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (5613)	3/29/2008 8:57:07 AM
From: CBurnett	Respond to of 71456

Obama's proposed tax increases just dont make sense..JMO...here we go.

To: RJA_ who wrote (5613)	3/29/2008 10:19:55 AM
From: Tommaso	Read Replies (2) \| Respond to of 71456

It is at least possible that Obama would be a listener rather than a decider. Our current Misfortune-in-Office has always been very good at getting his way and making people do what he wanted, rather than trying to find out what was the best thing to do. Obama is a learner, I hope. So it is possible that as president, he might convene the best-informed persons in science and economics (and who knows, even the arts--Kennedy did it). He will have the misfortune that Carter had, however, of trying to deal with a huge mess and being blamed for initial seeming failures. With regard to the dollar, it seems to me that everything depends on what the Chinese choose to do. The operation of the U. S. government has depended for a good many years now on China's accepting U.S. Treasury bonds. As inflation takes hold and impoverishes Americans, and as the dollar continues to fall, trade with China will drop off. China may be able to shift some exports to other countries and also to increase its domestic markets. But this will reduce its need to accept U. S. bonds. China will also be looking at huge losses in the real value of the bonds it already holds. To some extent, it will be in the position of one of these banks holding subprime paper. To try to sell it would be to create a financial crisis of a size never before seen.