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

[double bluff]

Yes, a global recession seems definitely plausible. Knowing nothing I 
would bet 50% for a global recession and 50% for a less catastrophic 
"adjustement". Anyway, I find quite ironic that  now US  is going to be 
pushed to "adjust" its economy in the same self-distructing way that it 
imposed to much of the "developing" world in the last decades...

joanna bujes wrote:


> 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.
>>
>>
>
>
> ___________________________________
> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk
>

 

 

 --

 Email.it, the professional e-mail, gratis per te: http://www.email.it/f

 

 Sponsor:

 Digitalpix stampa le tue migliori foto digitali 
* su vera carta fotografica professionale.

 Clicca qui: http://adv.email.it/cgi-bin/foclick.cgi?mid=1532&d=21-11