The fallout from a falling dollar

[WhiteTara]

even though this was posted on the stock market thread, I thought it deserved its own.
Thank you *co. Greenspin and the fool Bernake.
http://www.csmonitor.com/2006/0505/p01s02-usec.html
NEW YORK – For two weeks, the dollar has been hammered as foreign buyers shun the US currency.

As a result, the Canadian "loonie" is at its highest point in 30 years. The British pound is at its uppermost level since last September. Even the closely managed yen is at a six-month peak.

snip

He cautions, however, "My guess is that sooner or later, probably later, foreigners will get tired of financing us, and at that point, long-term rates will start to rise."

One way to keep foreign investors interested in US dollars is to raise interest rates, says Mr. Chan. But the risk, he says, is that "we slow down to the point where it may even become a recession."

The large US budget deficit doesn't help, says Bryson. "The US is spending more than it produces, and to the extent government is spending more, it becomes a compounding factor," says Bryson.

we are about to find out what being a debtor nation means. I think we can look to Argentina for some pointers.

[marmar]

1. The wheels are coming off the American empire...

and in the end, that's probably a good thing. One nation having hegemony over the world is unhealthy.

[Democrats_win]

2. Does this mean the stock market isn't really rising?

[acmejack]

3. Gold has been exploding! Wish I owned a bunch!

Up $24.00 in two days, bad juju for the USD. I know a bunch of alex jones types that have mass quantities of said AU. They have been preparing for this day literally for years.