Is the "Mother of all Financial Crises" Imminent? (tags)
A trade-weighted devaluation of the dollar of around 25 percent is necessary allowing the US currency to ski "gradually and orderly" against free-floating currencies. The IMF could establish a "substitution account" with "special drawing rights" to avert a dollar panic.
The deficit can only be lowered by devaluing the dollar at least 20 to 30 percent.. In 1963 the deficit amounted to five percent of econo-mic output. This changed within eight years into a surplus of one percent. Economic growth, tax increases andspending discipline
US Expert Sees Danger of World Recession (tags)
"The new administration elected in November 2004 must systematically reduce the deficits. Otherwise an inflation threatens. America within the next two years could lead into a recession.."