[lbo-talk] The Declining Dollar?

Doug Henwood dhenwood at panix.com
Mon Nov 8 12:21:58 PST 2004


Dennis Redmond wrote:


>Doug Henwood wrote:
>
>> It's hard to forecast how this could play out - there are too many
>> variables.
>
>True, but 99% of the outcomes of those variables are ugly, ugly, ugly. All
>the euro needs to do is stabilize right where it is, and all that East
>Asian capital will start flowing to the Euromarkets anyway. It was going
>to happen anyway, but the colossal stupidity, viciousness and sheer
>malevolence of this Empire has accelerated the time-table of its doom.

Well not necessarily. A high euro could crush euroland exports, leading to stagnation or worse. A low dollar could impel the U.S. to get its foreign accounts back into balance, by making imports expensive and exports cheap. Who knows how it'll play out?

Doug



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