Saturday, February 26, 2005

Australia warns about the effects of a dollar collapse

A top Australian treasury official is warning of a global financial tsunami if there is a U.S. dollar and government bond sell off.

Treasury Secretary Ken Henry compared the flood of money pouring into the United States to support its budget and current account deficits to the stock market's dot-com bubble in the late 1990s, the Australian reports.

[...]

Henry is just the latest in a string of recent voices warning about a possible dollar collapse. The International Monetary Fund said Wednesday urgent combined international action is required to head off such a danger.

Washington is running a budget deficit of $430 billion and a balance of trade deficit of $600 billion.
  Big News article

With no signs of reigning in the spending.

....but hey, do what you want....you will anyway.

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