Posted on 12/11/2006 7:10:05 PM PST by GodGunsGuts
Greenspan says expects more dollar weakness
December 11, 2006
Former U.S. Federal Reserve Chairman Alan Greenspan said on Monday he expected the dollar to stay weak for the next few years and will continue to drift down, weighed by the U.S. balance of payments deficit.
"I expect that the dollar will continue to drift downwards until there will be a change in the U.S. balance of payments," Greenspan told a business conference here via video-link from the United States.
"There has been some evidence that OPEC nations are beginning to switch their reserves out of dollars and into euro and yen," Greenspan said.
"It is imprudent to hold everything in one currency," he said, adding that at some point the dollar will be moving lower.
"That will be the experience of the next few years," Greenspan said.
Greenspan said markets were so sophisticated it was very difficult to forecast the short term direction of the dollar.
I wonder what the CURRENT U.S. Federal Reserve Chairman says.
Got gold/commodity-based currencies???
Greenspan needs to do "the Formula"
STFU & STTFD.
I have had enough of Andrea Mitchell's husband and I am not "exuberant"!!!
LOL! You forgot to mention that he is partly responsible for the mess were are in.
No. They don't work.
I meant commodity-based currencies such as the Cando (Canadian dollar).
The Canadian dollar is not "commodity-based".
I have no idea where you got that chart but I wouldn't use it personally.
In the sense that they are a commodity-based economy (oil, precious metals, etc)
I got it from here:
http://www.zealllc.com/2006/goldusd.htm
Glad you finally realize they don't have a commodity based currency.
I din't say it was based on a commodity standard. They have a commodity-based economy. The strength of the Cando is based on their economy. It is therefore a commodity-based currency. If you can think of a better way to put it, be my guest.
No, you said:
Got gold/commodity-based currencies???
Commodity based means convertible into the commodity.
If you can think of a better way to put it, be my guest.
Why don't you say, "Buy currencies of commodity exporting countries"? That is what you meant without being imprecise. It would be nice if you occasionally said something that I didn't have to translate from goldbug into English.
currencies are no longer a measure of the strength of the underlying economy - they are a measure of the stability of that zone's trading deficits. the euro isn't "strong", its stable because the euro-zone has a stable current account deficit. the dollar is "weak" for the opposite reason. and OPEC isn't going to sit around collecting dollars that they must convert into euros (at a declining rate) to import the goods and services they buy from the euro-zone, they'll need more dollars (our oil prices will rise), or they will sell oil directly in euros.
Everbody who is thinking clearly understands what I am telling them. For the rest, why bother? After all, you have already agreed to translate my words into your native tongue--Pollyanish. And for free, no less!
AG should re-think his tendency to make public pronouncements. He is retired and should be retiring out of deference to others who must do the job day in and day out.
He was a quarter back. He is no longer. He demeans himelf and his previous high office by being a Sunday quarterback.
Precisely. Very well put. That would of course be a disaster for the USD.
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