Friday, Oct 19, 2007

Needing $70bn a month just to keep the lights on isn't so smart.

FT.com: A more competitive dollar is good for America

The dollar has finally begun its long overdue correction. The dollar’s decline in recent weeks is just a prelude to the much more substantial fall needed to shrink the US current account deficit, running at a nearly $800bn annual rate, about 6 per cent of gross domestic product.

Posted by lvmreader @ 09:49 AM (355 views) Add Comment

1 Comment

1. Retiredbanker said...

Deliberate devaluation of the dollar is the only way the US can reduce ( i.e.write-off a substantial part of what is owing to creditors ) their
vast and unsustainable debt.

Friday, October 19, 2007 11:37AM Report Comment
 

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