CSM: Why a falling dollar spells trouble for U.S.

[Bradley in DC]

http://www.csmonitor.com/2007/1015/p17s04-wmgn.html?s=hns

Why a falling dollar spells trouble for U.S.
Weaker currency hurts nation's ability to 'call the shots' on international economic issues.

The United States dollar is getting sand kicked in its face on foreign-exchange markets. The consequences are many. For one thing, the currency shift is a challenge to what historians dub "American exceptionalism," the view that the US is superior to other nations because of its unique origins, national credo, historical evolution, distinctive political and religious institutions, and economic might.

The US will have to adjust to a changing situation, that it is one among a set of leading industrial powers, but "not calling all the shots" on international economic issues, says Van Doorn Ooms, a senior fellow at the Committee for Economic Development, a nonpartisan research group of some 200 US business leaders and educators based in Washington, D.C. . . .

[Corydoras]

Considering how left-leaning the CSM is, that article is quite an admission.

When talking to liberals, one line I use that usually stops them in their tracks (at least for a moment) is, "Look at what's happening to the dollar! Do you think we can AFFORD all those programs you want? We can't!"

[saku39]

Economic reality is setting in.

[OptionsTrader]

A good Mises vid on the correlation between money supply & prices, and also a brief history of instances of hyperinflation:

http://mises.org:88/FEA9

[dmitchell]

Considering how left-leaning the CSM is, that article is quite an admission.
How left-leaning is CSM? I'm thinking of subscribing because 1) they write original stories, not just AP reprints and 2) Michael Scheuer highly praised their reporting on al-Qaeda from Afghanistan and Iraq.

[Corydoras]

How left-leaning is CSM? I'm thinking of subscribing because 1) they write original stories, not just AP reprints and 2) Michael Scheuer highly praised their reporting on al-Qaeda from Afghanistan and Iraq.

They're not lefty like The Nation, they're just lefty in a soft, sentimental, social-justice sort of way. Your money wouldn't be wasted on a subscription. I read some of their articles myself.

[RP4ME]

So is there anything aside from a new currency that the the DEMS would put forth to rectify the decline in the dollar? I mean how can they win an election with a) more war b) Socialized medicine and not collapse teh ecomonmy...I ask this in all seriuosness b/c its farcical to me.....What will they propose?

[Corydoras]

So is there anything aside from a new currency that the the DEMS would put forth to rectify the decline in the dollar?

I don't get it, either. I keep telling people who want more programs, "Where is this money going to come from? The dollar is sinking, we're spending huge money on the war, and you want socialized medicine?" They are so used to the Fed printing money out of thin air, they think it's still going to be worth something.

:confused: