[lbo-talk] [Fwd: Why the World Needs a Weaker Dollar]

[joanna bujes]

If the dollar declines, who is to say that other regions can take over 
the role of consumer of last resort? If they can't, aren't we looking at 
competitive currency devaluation and world-wide deflation?

Not to say that there's an easy answer...

Joanna

double bluff wrote:


>
>
> http://iraqwar.mirror-world.ru/tiki-read_article.php?articleId=31180
> *Why the World Needs a Weaker Dollar*
> By: Stephen Roach on: 20.11.2004 [14:43 ] (78 reads)
>
> A $40 trillion world economy is dangerously out of balance and 
> seriously in need of a fix. A decline in the dollar is not a cure-all 
> for all that ails the world, but it should go a long way in sparking a 
> sorely needed rebalancing. That adjustment may now be under way.
>
> Global imbalances are a shared responsibility that requires a joint 
> resolution. America is guilty of excess consumption, whereas the rest 
> of the world suffers from under-consumption. Growth in US consumer 
> demand averaged 4% annually (in real terms) over the 1995 to 2003 
> period, nearly double the 2.2% gains elsewhere in the industrial world.
>
>