Rowhouse Logic - Breathtaking Inanity

Rubin, discussing the rapidly declining value of the dollar and potential consequences:

“If markets begin to fear long-term fiscal disarray and if foreign providers of the capital inflows upon which we have now become so enormously dependent share this fear and also develop a concern about our currency, then the markets may begin to demand sharply higher interest rates on long-term debt and possibly even create conditions of serious disruptions in our financial markets, with all the problems that that can lead to for our economy,”

It’s the serious disruptions that worry me. Since I’m not an economist, I won’t pretend to do any real analysis of what’s happening. One of the major fears, which appears to be emerging as something of a reality, is that the Chinese government will divest itself of its U.S. holdings, at which point we’ll all be in for an interesting ride.

In a post on the same topic Djhlights asks a great question. I wonder if I can privatize my Social Security funds in Euros?

This entry was posted on Tuesday, November 9th, 2004 at 11:07 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.