Dumping Of US Dollar Could Trigger 'economic September 11'

Posted on Tuesday, September 06 at 06:47 by Patm
Australia would be sucked into the vortex of such a recession, which would cause great hardship throughout the world, he warns. Prestowitz is not a doomsayer, neither is he alone in his views. As president of the Economic Strategy Institute, a Washington think tank, he is in regular contact with the most influential US business leaders, several of whom -- Warren Buffet and George Soros included -- have taken steps to hedge their currency positions against the possibility of a cataclysmic plunge in the greenback. "Right now," he says, "we have a situation in which the US is running huge trade deficits -- about $US650 billion ($766 billion) in 2004 -- which are financed by borrowings from the central banks of Asia -- mainly the Chinese and the Japanese. All the world's central banks are chock-full of US dollars -- they're holding many more dollars than they really want. They're holding those dollars because at the moment there's no great alternative and also because the global economy depends on US consumption. If they dump the dollar and the dollar collapses, then the whole global economy is in trouble. ------------------------------------------- This has been mentioned in earlier posts but this is the first time I know of that a mainstream media company has come right out and spilled the beans - and he is a REAGAN Republican no less! Not some consipracy theory spouting Democrat. The USA *IS* going to melt down. George Bush and Cheney's actions are guarenteeing that it will happen. The rest of the world is so ticked off at their actions and so scared of their apparent direction that they will make sure it happens. Canada needs to disentagle itself from the fascist state that has replace the United States of America and shrug off the US dollar dependancy. If we don't, we're completely doomed. http://www.theaustralian.news.com.au/common/story_page/0,5744,16416680%5E28737,00.html

Note: http://www.theaustralia...

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