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

To: GST who wrote (31280)	10/24/2010 4:28:19 PM
From: carranza2	1 Recommendation Read Replies (2) \| Respond to of 71477

How will the US finance its current account deficit without QE2? Interest rates will necessarily go higher. And that, of course, will be when it hits the fan. The question, IMO, is not the way you phrase it but instead is this: How will the US will finance its future current account deficits if it engages in a massive round of QE2? Bernanke is not as immensely stupid as many believe. Thanks to his predecessor's policies, he is between a rock and a hard place. He cannot renounce his training and engage in a policy volte face even though, as an intelligent human being, I think he can clearly recognize that the monetarist and Keynesian credos are bankrupt. The above is another reason why I think QE2 will disappoint. Ironically, the rumor of a massive round of QE2 has already done what actual QE2 was intended to do. We need a Cameron in charge, and we have one in David Walker, but no one listens to him because austerity is not politically feasible. In fact, we seem to want exactly the opposite, i.e., loose money and more false (and toxic) prosperity. We don't do anything substantive until our backs are to the wall. Unfortunately, insidious economic problems of the kind we are facing never come instantly, nor do they announce their presence at the inception. Rather, they start small and mushroom into huge and intractable difficulties. Will it be too late by the time our fighting spirit is engaged? Who knows, but I am not optimistic. These are enormous difficulties we are facing. And ignoring.

To: GST who wrote (31280)	10/25/2010 8:08:34 AM
From: DebtBomb	Respond to of 71477

Dollar Outlook `Clearly Negative' for Next Six Months, Deutsche Bank Says By Paul Dobson - Oct 21, 2010 4:52 AM ET Tweet (1)LinkedIn Share Business ExchangeBuzz up!DiggPrint Email .Deutsche Bank AG cut its forecasts for the dollar against the euro through the end of the first quarter next year, saying the outlook for the U.S. currency in the period is “clearly negative.” The German bank raised its estimate for the euro to $1.45 for both the end of the year and the end of the first quarter next year, up from $1.30 and $1.35 respectively, Bilal Hafeez, global head of foreign-exchange strategy in London, said today in a research note. His prediction for the end of next year is $1.30, according to the note. Deutsche Bank forecasts the yen will strengthen to 75 against the dollar over the same period, according to the report. bloomberg.com