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U.S. Dollar Will Weaken, Currency Crash Possible, Roubini Says?

http://www.bloomberg.com/apps/news?pid=20601087&sid=a.SW_71xPhjA

The dollar will weaken and the U.S. risks seeing a crash of the currency unless it does more to control the deficit and reduce debt, said New York University Professor Nouriel Roubini, who predicted the financial crisis.

“Unless in the medium term these issues of fiscal sustainability are addressed, and unless we mop up that excess liquidity from the financial system, eventually the financial markets and the foreign creditors of the United States might get more concerned about the sustainability of the U.S. fiscal deficit and about the U.S. being tempted to use the inflation tax as a way
so are we f’d for sure?

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10 Responses to “U.S. Dollar Will Weaken, Currency Crash Possible, Roubini Says?”

  1. which play book instructs the revolutionary to first destroy the currency? When you know that answer will you still follow Obama?

  2. TEH TYME KITTEH ~pantheist~ Says:
    October 3rd, 2009 at 9:19 am

    Buy Gold

  3. read The Shock Doctrine by Naoim Klein, it will scare the bejesus out of you.

  4. Yes, we are in trouble. When it gets bad enough though (soup lines), Obama will "save" us and the transition will be complete.

    Few Americans would allow him to just "take" our liberties. But when your child is hungry, you will accept what you must.

  5. Not yet, there are some actions that we can take to avoid massive inflation from all of the money we have placed into circulation.

    The first is to start new business and grow the GDP at about 3-4% per year for a handful of years on out. This should soak up the excess money printed. The problem is any projection that is not coming from the Obama administration says we will never accomplish that.

    The other, would be to default on some of our debts to foreign countries and restructure all of the debt we have. Keep in mind other countries do not want to be paid in worthless dollars either, they have plenty of interest in a strong currency.

    But rationally, we are in some serious trouble.

  6. Either Obama and the Federal Reserve are delusional or they are trying to crash the currency on purpose.

  7. Yes, quite true. This year began with a soft dollar; it has no value to foreign countries. To make matters worse, we have two stimulus packages & a budget that is vary ambitious. This has been going on since Nixon, & wont get better until we can export something to other countries.
    Best bet is to buy some silver. Currently you can buy for about $15 per ounce. Like gold, its value goes up when the dollar goes down (& it’s cheaper).

  8. Team O wants to pay off our debt with hyper-inflated dollars. When a loaf of bread costs 10 million dollars, we’ll be debt free.
    Hyper-inflation or default - our two options.

  9. BekindtoAnimals22 Says:
    October 3rd, 2009 at 9:19 am

    Unfortunately the government printed at least 2 trillion and dispersed it into the economy. This along with the massive deficit will lead to hyperinflation when the economy begins to pick up. There is no doubt about it. With the devaluation of the dollar it will no longer be used as the international currency and is likely to collapse. Some countries have already stopped using the US dollar and have switched to the Euro.

  10. When this happens the rest of the world will at last be free.

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