Spiegel: The World from Berlin: 'Something America Can Afford Less Than Ever' -
The World from Berlin: 'Something America Can Afford Less Than Ever'
The US government intervention in this crisis is cause for new concern. For one, the new actions and interventions of the Fed leave the impression that the problems behind the scenes must be much greater than what's been made public so far. It's also an absurd contradiction when the president meets with his top economic advisers and announces that everything's 'under control.' When something is really 'under control,' the White House doesn't get involved. George W. Bush is also not known for being tremendously curious about the details of the stock market."
"There's also the danger that the Federal Reserve will be over-influenced by bankers' pleas … This dynamic is dangerous, because it threatens to further undermine faith in the dollar. Its precipitous decline on the currency markets -- along with the latest price records in oil and gold -- are warning signs we should take seriously."
"Naturally the US economy profits from a depreciation-driven improvement in competitiveness. But to stop the falling real-estate and stock markets and stabilize its reeling banks, America needs lots of fresh foreign capital. A global retreat from the greenback is something America can afford less than ever."
Labels: Iraq
