Morgan Stanley calls Bush Economic Policies "Insane"

[Ant]

Mr Roach said that American consumers were relying on a "bubble" in US property prices to sustain unrealistic spending and "turning their homes into a massive ATM machine".

Americans relying on borrowing against their homes are snapping up imports from Asia, made cheap by those countries' currency pegs to the dollar. To sustain the pegs, Asian nations are forced to keep buying dollars, artificially driving down US interest rates so Americans borrow even more.

"This is an insane way to run the world economy. You know that, we know that, but the Federal Reserve is in denial," Mr Roach said. He added that with US interest rates now climbing, a sharp retrenchment by American consumers could jeopardise economic recovery there and worldwide.

The comments came after a steep and steady slide in the dollar over the past three years that accelerated after Mr Bush's re-election in November - although the currency has steadied recently.

http://www.timesonline.co.uk/article/0,,3-1458322,00.html

This was from a conversation at the World Economic Forum I believe.   See: http://www.weforum.org/

[dexter]

Right on

[dexter]

the Right Wing GOP
is the BLAME!

[Don Rizzle]

Many of the world's central banks are starting to look to the euro to fill their currency reserves instead of the dollar, a survey suggests.
The poll carried out by Central Banking Publications found 39 nations of the 65 surveyed raising their euro holdings, with 29 cutting

[dexter]

the euro is taking over!

[M Dogg™]

the Right Wing GOP
is the BLAME!

actually it was Ronald Reagon that was the one that put us in debt.

I'm serious, what we need is for the people we own money to call the president everyday, and put a collection agency on the U.S. government. They do it to broke ass people like me that don't have two nickles to rub together, but the U.S. is in debt trillions of dollars, and I know for a fact, that is you have bill collectors going after the president, then Bush would have never broken the balence budget that Clinton had in the 90's that was suppose to erase the debt.

[Ant]

Well the U.S. government does pay its debt.  When you borrow you have to pay interest.  We meet all our interest payments.  There is an international bill collector, its called the IMF.  The problem with the U.S. debt is that as our debt increases, so do our debt payments, which in effect make our tax dollars less valuable since a higher percentage of our tax dollars go towards servicing our debt.  Deficits also tend to devalue currency, which is why the U.S. dollar continues to drop in value. 

[Woodrow]

GREAT POST!

[Matrix Heart]

GREAT POST!

 

[dexter]

The USA is going Broke LOL