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Shocker: American Dollar Craters as Obama Debt Mounts

dollar-falls

News Item: Dollar hits new multimonth low vs euro, pound, yen
The dollar kept falling Friday, notching fresh multimonth lows against the euro, pound and yen as a warning that Britain’s debt level may result in its credit rating being cut ricocheted into worries about the massive U.S. deficit.

The 16-nation euro rose to $1.4015 in morning trading from $1.3889 in New York late Thursday—its first time above $1.40 since Jan. 2.

The British pound rose to $1.5916 from $1.5890, peaking at $1.5945 earlier in the session, its highest point since Nov. 6.

Meanwhile, the dollar edged up to 94.51 Japanese yen from 94.23 yen—after earlier falling to 93.82, its lowest point since Feb. 23.

“The problem for the U.S. is particularly acute because of its reserve status,” said UBS analyst Brian Kim in an e-mail to investors Friday. Major holders of U.S. debt, such as Middle Eastern sovereign funds and the Chinese government, have not been shy about calling the U.S. out for what it sees as policies that will trigger inflation, shrinking the value of their Treasury holdings.

Well, no shit, Sherlock.

With the massive Obama government spending and debt there will be massive inflation and stagnant economic growth – just like the Jimmy Carter STAGFLATION in the 1970’s.

The solution then, as it is now, was the election of a conservative President (President Ronald Reagan), limited government, reduced federal spending and tax cuts.


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