Greenspan Says Demand for U.S. Debt May Be at `Limit'

Greenspan Says Demand for U.S. Debt May Be at `Limit'

www.bloomberg.com

Former Federal Reserve Chairman Alan Greenspan said the dollar's depreciation may reflect growing unwillingness among foreigners to buy U.S. debt.

``Obviously there is a limit to the extent that obligations to foreigners can reach,'' Greenspan said in a speech in Washington today. The dollar's decline to its lowest since 1997 may be ``an indication America is approaching this limit.''

(visit the link for the full news article)

Greenspan yet again talking the dollar down.

After stacking the deck for a dollar washout during his reign at the Fed, is Alan now putting the final nails in the greenback's coffin?

How far will the dollar fall, (.72 seems first major support), and how will that impact the already fragile US economy?

Is this a calculated design to reduce/wipe out international debt (think Weimar Republic)?

www.bloomberg.com
(visit the link for the full news article)

[edit on 22-10-2007 by RogerT]

From Jim Sinclair:

This is a downward spiral that cannot, like with people, be stopped without intervention. The point of intervention was when ex-Chairman Volcker said the dollar would continue to decline until policies were put in place that have a proven history of turning deficit towards surplus . None of that has occurred as we stay the course. The Formula is active here as well.

What Greenspan is talking about is the negative Treasury International Capital Flows (TIC) report which is the stuff .7200 USDX and lower is made of.

www.jsmineset.com...

Looking forward to my next holiday in the US... changing my Euros to Dollars

Like I need Bubbles Greenspin to tell me about the economy time and again? First, the Iraq Quagmire ($462 billion to date) was about oil. No, you don't say? Now, this? Seriously, it's like the Synarchists like reminding us how THEY destroyed the semi-modern age.

OP -- "fragile economy" -- exactly.

How much longer? Well, foreclosures have to re-sell before the loss is "counted" should you all know what that means, me, I don't, I figure the banks/lenders have a ways to go before this 'adjustable'-rate/subprime collapse is realized -- maybe even late next year.

Why doesn't Bubbles talk about the $9 TRILLION U.S. deficit?!

Edit: A little light reading on Cheney, about an aforementioned word, for those looking it up. . . ..

[edit on 22-10-2007 by anhinga]

Originally posted by Terrapop
Looking forward to my next holiday in the US... changing my Euros to Dollars

same here Summer (changing GBP to USD)
hopefully the dollor will go down further so its something like 1=2.49 or higher

reply to post by Terrapop


If you stay for a while you will be able to profit hansomely on the conversion back to your original currency!

reply to post by anhinga


Why do people keep posting things from larouche here??????

Originally posted by traderonwallst
reply to post by Terrapop

 

If you stay for a while you will be able to profit hansomely on the conversion back to your original currency!

Yeah, like if you're thinking of holidaying in the US for a decade or two

Right on Trader

The only real comeback the dollar has made in the past 6 years is when interest rates went from 2% to 5% in one year. Now that interest differentials with the EUR are so vast, and people are still dumping the dollar to buy EUR, and the deficits continue to expand at ever stunning rates, and with Bernanke and crew pumping ever more dollars into the system, and and and .... what makes you think the dollar will strengthen?

[edit on 24-10-2007 by RogerT]