Last copyrighted in 1976, Professor Paul Samuelson's classic work Economics notes that current account balances for the US that approached the tens of billions were soaring, and lamented in fear of their effect. Today, our current account balance is over half a tr, tr, trillion, closing in on a trillion dollars per year. Capital inflows are matching our current balance, meaning OPEC nations, China, and other Asian governments were buying dollar-based bonds and deposits.
Economics Professor Martin Feldstein of Havard believes that the dollar must at some point fall at least 30% to correct the trade-weighted value of the dollar. Also, former Fed Chair Paul Volcker believes the "huge imbalances...seem to be as dangerous...as any I can remember...I don't know whether change will come with a bang or a wimper, whether sooner or later."-The Washington Post,2005.
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1 comment:
Wow man you are beginning to think like me.
This is scary. Is it not amazing that when you get the other side of the coin you perceptions change completely??
That is why I always do that.
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