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

To: ggersh who wrote (6335)	4/18/2008 3:06:03 PM
From: stan_hughes	Read Replies (1) \| Respond to of 71475

I don't disagree that Ben appears to be somewhat off-base in some of his measures if you're trying to evaluate his actions in the context of what's best for the nation, but therein lies the flaw in the analysis -- one always needs to remember that any Fed Chairman does what's best for his employers, i.e. the narrow base of large banks that own the Federal Reserve With respect to agriculture now being in a different state of affairs than it was during the Depression, that's a fact -- but the US is currently going through the very painful throes of having itself globally "marked down" as it were (as exemplified by the falling dollar) in search of a new equilibrium in external trade and finance -- as the dollar falls, the twin deficits will move back into balance (the trade deficit has already seen an almost 40% improvement). Any restriction of trade due to reciprocal tariff wars would only serve to diminish the velocity of that naturally corrective phase, extending the term of the slowdown required to reset it In other words, tariff wars typically turn recessions into something worse, and that's not good for anybody