Tuesday, April 12, 2011

No wonder the Dollar has no friends!

The following article from Bloomberg detailing the national deficits of the major economic nations as a percentage of GDP illustrates the hurdle that the US Dollar faces on the foreign exchange markets. Debt, debt and more debt as far as the eye can see and the lack of resolve at the national level to effectively address the problem - throw in a mix of easy money policies by the Federal Reserve and no wonder the Dollar cannot catch much of a safe haven bid on a day like today.

U.S. Deficit to Rise to Largest Among Major Economies, IMF Says


By Sandrine Rastello - Apr 12, 2011 7:00 AM PT
 
The U.S. is set to have the largest budget deficit of major developed economies this year and should narrow it now rather than face tough adjustments in the next two years, the International Monetary Fund said.
The U.S. shortfall will reach 10.8 percent of its gross domestic product this year, ahead of Japan and the U.K., the Washington-based IMF said in a report released today.

You can read the entire article here:

http://www.bloomberg.com/news/2011-04-12/u-s-deficit-will-expand-to-largest-among-major-world-economies-imf-says.html
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1 comment:

  1. Buffalo River Chamber of CommerceApril 12, 2011 at 2:58 PM

    More like easy money and outright fraud at the Fed.

    http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411?page=2

    What could be more ridiculous than the secret loans that are surfacing every day? I think it is reasonable to expect some tolerance for poor judgement, it is something else entirely for the Fed to claim one thing and do another as above.

    Add this lack of trust to the lack of competence, and the dollar is doomed. Surely this is a sign of a failed empire.

    MD

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