Yet another RECORD TRADE DEFICIT interrupts the happy talk on The Street.
It's amazing how detached Wall Street seems to be from the rest of the world and even from the rest of the global financial community.
There is the persistant belief in AMERICAN EXCEPTIONALISM that innoculates Wall Streeters and most Americans from even hearing criticism of policies that are disasterous in the long run. The Trade Deficit is the most serious.
This notion that the Trade Deficit will be "cured" by weaker dollar is the latest nonsense to be floated at the highest levels of the US policy chain.
But if your really, really don't made things anymore....how can you sell them?
YET THERE ARE CRACKS STARTING TO SHOW;
Yesterday amid more happy talk about mergers, which are really a sign of impending weakness, GOLD ROSE FIVE DOLLARS!
Today the G-Man meets in tribal council to discuss a rate hike that everyone knows is coming and that may be too little too late. Because the Fed is being chased by the CURRENCY HOUNDS now. The dollar has plunged so much that Eurolanders can now treat the US like a "colorful" but backward third world country. So supertitious! So violent! So dangerous! Totally unscientific!
Even as US Imperialism "bleeds" in Iraq and in the middle east...making the situation much worst than it had to be, but for these "little mistakes."
And, the Bushies just push on with THE RICH FOLKS AGENDA, no matter what!
A weak dollar policy may not hit the rich as hard as the average American. Most "rich" folks have their money tied up in HARD ASSETS anyway. Homes, businesses, certain stocks, land, oil and gas etc. These won't feel the pinch of a weak dollar as much. IN FACT THEY WILL GO UP AS THE DOLLAR GOES DOWN---at least in the long run.
But as Dubya likes to say:
ANOTHER DAY, ANOTHER DEBACLE!
WHAT'S FOR LUNCH, CONDI?
http://www.stat-usa.gov/
