Wednesday, Sep 12, 2007
A Rather Gloomy View of the World's Favourite Reserve Currency
MoneyWeek: Prepare to sell as dollar rot sets in
Paul Tustain, of www.BullionVault.com, forecasts a gloomy outlook for the dollar. He suggests the US needs independent central bankers, like Paul Volcker, who are prepared to be hated for throwing the US into recession by holding rates high, and sacrificing both the weakest businesses and millions of jobs, to avoid the US wealth entirely dissipating. A bit too bear-ish for my view but there is good read-across to the status of the Pound. I can not believe the UK's BoE will keep interest rates high enough for long enough because they are tied to the flawed CPI measure of inflation.
Posted by talking rot @ 06:48 AM (498 views) Add Comment
4 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. cyril said...
People on this site are keen to spot a VI, but a spokesman from BullionVault is hardly likely to be unbiased is he?
It seems to me that Moneyweek is to gold what an estate agent is to houses. It's always a good time to invest in gold. Or houses.
2. inbreda said...
Not sure I understand what Moneyweek have to gain financially by recommending gold Cyril. I therefore don't understand how they are a VI
3. Davidr said...
I thought this was a very good article which will, unfortunately, prove to be an accurate forecast of the near (ish) future. Sorry to be so pessimistic. I don't think the key players have the discipline or integrity to do the "right" thing (except perhaps for Mr Mervyn King) and that this will result in inflation returning. It is always difficult to visualise extreme change ( just try to imagine summer sun bathing on your lawn when it is covered in a thick layer of frost on a winters day, or imagine trying to tell the architect of the twin towers before 9/11 that they might collapse within an hour or two of being hit by a plane). We tend to see the future as a straight line projection of what's happening now and of what is accepted as the norm today, and, whether we like it or not, we are influenced by the self interested hype from the financial press and their insider informants.Visualising the realisation of this articles' insights into the future is perhaps more difficult than seeing an imminent house price crash. The latter has already started (in my view) and will take months to unroll.
I liked all three of "Talking Rot's" posts!
4. dohousescrashinthewoods said...
I have an odd feeling that Mervyn is actually a fairly nice guy, albeit constrained by his masters and colleagues.
He's not perfect, but he does seem to be trying to play a decent game as far as he can get away with it.