I had to emerge from my dialup-driven holiday hiatus to inform loyal readers (you'll learn it on this blog first) that the dollar's slide has become free fall. A telling chart of dollar/euro price over time may be found here, and shows that after hanging at alltime lows (in the $1.24 range) for several days, the dollar tested the $1.25 area for the first time on Monday and by this morning (early, early) had already dropped into the $1.26 range. A decline of a penny less than a day of trading!
I predict that the mainstream news, as well as the experts, will now address the reality of a plummeting dollar, which will in turn weaken the dollar further, which will in short order put the skids on the "recovery" because the fed will have to increase interest rates to maintain the buyers' interest in US debt instruments, which are, as we know, the only means by which the US is able to raise the money needed to feed its imbalance between spending and income.
I don't like to be the bearer of bad economic tidings; but my pain of doing so is balanced by joy watching Bush's buddies in the capital/corporate markets finally reveal that Bush's economic recovery has been a debt-fed fraud.
DKos presents an extended message board on the subject here.
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