[Homestead] Falling dollar
Don Bowen
don.bowen at earthlink.net
Thu Dec 2 13:59:42 EST 2004
In today's paper there was an editorial addressing the two schools of
thought on the fall of the Dollar. One school says it will drop a bit
further then stabilize at its right point. They are predicting mild
inflation and a difficult adjustment period but little beyond that.
The other school claims a much more dire scenario. Paul Volker (the fed
chairman before Greenspan) is expecting a further slide to as much as 40%
of its current value. He is saying that if the slide is not arrested then
we will see a spike in interest rates, a slowdown of economic growth, and
heavy inflation. He is concerned that the fall is endangering oil
countries profits and will they demand higher prices and a shift away from
the dollar. Foreign investors who have kept up the dollar up may quit and
shift investment to other currencies such as the Euro.
Don Bowen
Awl Knotted Up Woodworking
Valley Center, CA http://www.braingarage.com
More information about the Homestead
mailing list