[Fwd: A glance at the economy]

[Antid Oto]

REPLY TO: D66 at nic.surfnet.nl

-------- Original Message --------
Subject: A glance at the economy
Date: Mon, 15 Jun 2009 18:23:41 -0700 (PDT)
From: srd <srdiamond at gmail.com>
Organization: http://groups.google.com
Newsgroups: alt.politics.socialism.trotsky

"The Fed has committed itself to buying $300 billion worth of
treasuries this year, but  clearly it will have to buy a great many
more than that. Remember, $1.7 trillion or so are coming onto the
market. and you assume that the credibility of the United States in
the eyes of Americans, as well as foreign investors, is going to
withstand this? at some point the United States does start to look
like a Latin american economy, not only to people abroad but maybe to
people at home. If the Fed's balance sheet explodes to up to $3 or $4
trillion, who knows how big it could get. at what point do people stop
believing in the US dollar as a reserve currency, or even as a store
of value for their own savings?"--Niall Ferguson, Prof. of History at
Harvard and Senior Fellow at the (right-wing) Hoover Institution.
("The Crisis and How to Deal with It," New York Review of Books, June
11, 2009.)

"What we're doing is piling public debt on top of private debt to
socialize the losses; and at some point the back of some governments'
balance sheet is going to break, and if that happens, it's going to be
a disaster." -- Nouriel Roubini (Ibid.)

"The outlook for Europe and Japan, both this year and next year, is
even worse. Most of the advanced economies are going to do worse than
the united States..." (Roubini)

srd

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