From Jim Gilliam's blog archives
As the dollar plunges, and the debt soars, Osama smiles

November 23, 2004 9:56 AM

Oldman at BOPnews explains how the dollar's plunge could impact Americans.

Michael Schubert, an economist at Commerzbank "sees some signs of a 'herd instinct' developing."

Morgan Stanley's chief economist, Stephen Roach, privately calls it economic "Armageddon."

And while the U.S. debt is rocketing past $7.4 trillion as the Republican-dominated Senate is forced to ratchet up the debt ceiling yet again, Iraq scored a sweetheart deal outside the G-20 summit as the so-called "Paris Club" forgave 80% of its international debt.

I'm reminded of Osama bin Laden's long-term plan of "serving a blow", "further weakening", "shaking confidence" and "accelerating the fall" of the American economy.

More from the archive in Economy, Terrorism.

As the dollar plunges, and the debt soars, Osama smiles (11.23.2004)

Next Entry: Dan Rather resigned (11.23.2004)
Previous Entry: George W. Bush: Our Leader. (11.23.2004)

Read the 14 comments.

Ben:

I wonder what would happen if our economy really took a huge dive.

Tue Nov 23 2004 12:47 PM


Dave E.:

We're gonna find out in another year or so. I've posted about this before.

Economics transends any political partisan hackery and tsk-tsk'er elitists. The victory dance of all those feeling high on the hog right now will be relatively shortlived once they have this internal dialogue: "what?...we're not the greatest anymore?...but, but...that's impossible!" And this is not me wishing ill on my country. This is me, like any other voracious student of IPE, broadcasting a fair warning about the inevitable flow of history. As I see it, anyway...I could be wrong, and I sure hope I am.

The line for government cheese will be forming to the right...

Tue Nov 23 2004 8:37 PM


Right Wing Robby:

I see Osama has "shakin the confidence" of the liberals.

Wed Nov 24 2004 6:22 AM


Tom from Madison:

Isn't the President accountable for his failure to apprehend Osama Bin Laden? It's been 3 years since we've been "on the hunt."

The reality is we have lost lives, spent a lot of $, and lost a lot of allies in the world community and Osama is still at large. It's not that my confidence is shaken. We simply have inept people in charge.

Wed Nov 24 2004 7:35 AM


Independent Jones:

RWR,

If you're not shaken by $7.4 trillion deficit and an ever-weakening dollar, then you must be a machine. I would image that even the most diehard republican (aren't they the party who touts fiscal responsibility) would be very nervous about where we're headed.

Wed Nov 24 2004 7:46 AM


dhermesc:

The dollar has been held at artificially high levels for two decades - its been the only currency besides the Swiss Franc to bank stored wealth in. Right now the European banks are making a run trying to convince continentals to keep their money at home. All this will do is drop the value of the dollar to a realistic level (instead of a speculative value) and aid in US exports while making imports more expensive. If only the dollar would slide against Asian currencies. Look at China (for all you socialist), they deliberately keep their currency trading at an artificially LOW level to aid in exports.

Its beyond me why foreign investors have been screwing with the dollar anyway - given the extremely low interest rates the past 5 years.

Wed Nov 24 2004 9:25 AM


Paul:

Tom,

"Isn't the President accountable for his failure to apprehend Osama Bin Laden?"

I think the answer to that is a resounding "no". Accountability is away on a long-term sabbatical and will check messages upon return.

Wed Nov 24 2004 2:09 PM


Paul:

Independent,

"RWR, If you're not shaken by $7.4 trillion deficit and an ever-weakening dollar, then you must be a machine."

I always wondered what happened to Robby The Robot. Apparently, his screen star programming was dumped in favor of a shrill version of Eliza, specially modified to troll progressive websites and spew talking points from Rush Limbaugh's Great Big Stack of Stuff (TM).

I'm trying to remember what Robby's power supply was. Can we simply cut his extension cord, or does he have a nuclear energy pack on his back?

Wed Nov 24 2004 2:17 PM


Paul:

Robby The Robot,

"I see Osama has "shakin the confidence" of the liberals."

I've just picked up a fault in your AE35 spelling unit. It's going to go 100 percent failure within seventy-two hours. I suggest you go EVA to replace the unit before it fails.

Wed Nov 24 2004 2:31 PM


Right Wing Robby:

I dont listen to Rush. I have a job.

When you dont have an arguement, the personal attacks always come out.

Classic liberal move.

Wed Nov 24 2004 3:00 PM


Cici:

"When you dont have an arguement, the personal attacks always come out."

.... I find that a little funny. Oh well.

Wed Nov 24 2004 7:19 PM


dhermesc:

Paul is a little slow, so you have to make a special allowance for his inability to to make an intelligent case for himself.

Mon Nov 29 2004 7:23 AM


dhermesc:

Think a weak dollar is bad? Germany is pissed the Euro is rising against the dollar:

"One of the most vulnerable targets is the German car industry, which is already in dire straits.

Illustrating the sharp deterioration, the EU's trade surplus with China has gone from surplus in 1995 to a €10,373billion deficit in 2002. China is now Europe's second biggest trade partner after the US.

The deficit is expected to be much higher in 2004 as the euro reaches historic highs against the Chinese yuan. The yuan is pegged artifically to the dollar. The effect is to give Chinese exporters a massive competitive boost against European firms, a situation that is unlikely to be tolerated much longer as economic growth stalls in the Germany and Italy."

http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2004/11/30/cneu30.xml&menuId=242&sSheet=/money/2004/11/30/ixfrontcity.html

Tue Nov 30 2004 7:40 AM


Anonymous:

How about discussing the effect of Chinese exports on American companie and the US economic future? Your dollars spent at Wal-Mart are putting Americans out of work. Republicans used to say this was a bad thing. Now they celebrate it.

I'm thankful for Lou Dobbs. At least there are some rational people left in business circles.

Tue Jan 4 2005 1:52 PM


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