From Steve Clemon's "Wasthington Note" re George Soros' new book and a media/bloggers' confeence call this morning
http://www.thewashingtonnote.com/archives/2008/04/note_to_mediabl/A link to the recorded conference call will be available later at
http://www.thewashingtonnote.comGeorge Soros, the legendary financier, philanthropist and bestselling author, has written a new book, The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means (9781586486846, $22.95), to be released exclusively as an e-book by PublicAffairs on April 3.
Mr. Soros’ opening sentence summarizes his sense of urgency about the turmoil in the financial world, where he is one of the most successful and enduring of investors: “We are in the midst of the worst financial crisis since the 1930s.”
Here are some lines from the book. . .
From The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What it Means --
"The United States is facing both a recession and a flight from the dollar. The decline in housing prices, the weight of accumulated household debt, and the losses and uncertainties in the banking system threaten to push the economy into a self-reinforcing decline.
Measures to combat this threat increase the supply of dollars. At the same time, the flight from the dollar has set up inflationary pressures through higher energy, commodity, and food prices.
The European Central Bank, whose mission is to maintain price stability, is reluctant to lower interest rates. This has created a discord between U.S. and E.U. monetary policy and put upward pressure on the euro. The euro has appreciated more than the renminbi, creating trade tension between Europe and China.
The renminbi can be expected to catch up with the euro both to avoid prote ctionism in the United States and increasingly in Europe, and to contain imported price inflation in China. This will, in turn, increase prices at Wal-Mart and put additional pressure on the already beleaguered U.S. consumer.
Unfortunately this administration shows no understanding of the predicament in which it finds itself."
The book is currently availabe as an ebook and will be available in hard copy mid-May, 2008. For purchase info see
http://www.georgesoros.com/creditcrisis08