The Economist on what happens if the dollar's fall means that it loses its status as the reserve currency for the world: "The dollar's loss of reserve-currency status would lead America's creditors to start cashing those cheques — and what an awful lot of cheques there are to cash. As that process gathered pace, the dollar could tumble further and further. American bond yields (long-term interest rates) would soar, quite likely causing a deep recession. Americans who favour a weak dollar should be careful what they wish for. Cutting the budget deficit looks cheap at the price."
(Via Talking Points.)
Posted by geoff2 at December 8, 2004 06:46 AMMeanwhile, Bush is proposing to borrow more money to support Social Security changes. (I refuse to use the word "reform" for the particular plan being proposed.) And doing so in his usual high handed way
http://www.washingtonpost.com/wp-dyn/articles/A43239-2004Dec7.html
Posted by: Kate S at December 8, 2004 07:47 AMI suspect Kate S meant"ham handed" versus "high handed". {wince}
-GeBo
Posted by: Gene Bob at December 8, 2004 10:54 AMBoth apply, surely.
Geoff (at a McDonald's in Oxford that offers Internet at £1 for 30 minutes)
Posted by: Geoff Arnold at December 9, 2004 04:22 AM