By Craig Roberts
The dollar’s rise is temporary, and its prospects are bleak. The U.S. trade deficit will lessen due to less consumer spending during recession, but it will remain the largest in the world and one that the United States cannot close by exporting more.
The way the U.S. trade deficit is financed is by foreigners acquiring more dollar assets, with which their portfolios are already heavily weighted.
The toxic American derivatives were marketed worldwide by Wall Street. They have endangered the balance sheets and solvency of financial institutions throughout the world, including national governments, such as Iceland and Hungary.
Banks and governments that invested in the troubled American financial instruments found their own debt instruments in jeopardy. The financial crisis has reversed this process. The toxic American derivatives were marketed worldwide by Wall Street.
They have endangered the balance sheets and solvency of financial institutions throughout the world, including national governments, such as Iceland and Hungary.
Banks and governments that invested in the troubled American financial instruments found their own debt instruments in jeopardy.
Commentary Courtesy: www.jsmineset.com
