US Federal Reserve Chairman, Ben Bernanke, addressing G20 finance leaders, stressed the value of a strong dollar and his optimism for a recovery of the green-back within the next 18 to 24 months.
The sober pragmatism of Bernanke is inspiring and I hope he's right. However, despite significant fundamentals in the world's largest and most diversified economy, the Dollar has lost significant ground to the Euro: which has the potential and a prophetic pretext for supplanting the Dollar.
Bernanke maintains the best intentions of a monetary authority, but his vision is out of kilter with the profligate fiscal policies of an administration that insists on funding expensive wars, costly social agendas and high deficits.
Dollar fundamentals have become moot as the US deficit edges towards the $10trillion level, but its strength is being undermined by other significant economic factors. In and of themselves these factors are not material, but if too many compounding factors coalesce simultaneously, a last straw will eventually break the camel's back.
The US has also been a major stabilising factor in global politics, but her influence is waning at a time when other global protaganists are exploring their options in the middlle-east.
Although the world hopes for alternative energy resources to save us from Mid-East dependencies, the bible predicts a world-level conflagration involving, at various stages: a dangerous Russo-Iranian alliance, a backlash against US occupation of Iraq, the eventual entry of China and India into Mid-East affairs and European engagement, possibly via Turkey.
(c) Peter Eleazar at http://www.bethelstone.com/
The sober pragmatism of Bernanke is inspiring and I hope he's right. However, despite significant fundamentals in the world's largest and most diversified economy, the Dollar has lost significant ground to the Euro: which has the potential and a prophetic pretext for supplanting the Dollar.
Bernanke maintains the best intentions of a monetary authority, but his vision is out of kilter with the profligate fiscal policies of an administration that insists on funding expensive wars, costly social agendas and high deficits.
Dollar fundamentals have become moot as the US deficit edges towards the $10trillion level, but its strength is being undermined by other significant economic factors. In and of themselves these factors are not material, but if too many compounding factors coalesce simultaneously, a last straw will eventually break the camel's back.
The US has also been a major stabilising factor in global politics, but her influence is waning at a time when other global protaganists are exploring their options in the middlle-east.
Although the world hopes for alternative energy resources to save us from Mid-East dependencies, the bible predicts a world-level conflagration involving, at various stages: a dangerous Russo-Iranian alliance, a backlash against US occupation of Iraq, the eventual entry of China and India into Mid-East affairs and European engagement, possibly via Turkey.
(c) Peter Eleazar at http://www.bethelstone.com/
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