A Warning from the OECD

From the Organisation for Economic Co-operation and Development (OECD), the Western world’s chief economic overseer, a warning:

the eventual rebalancing of the US current account gap ‘looks increasingly unavoidable’ and will send shock waves across the globe, starting with a slump in the dollar’s exchange rate.The OECD said in its world economic outlook that the depreciation faced by the dollar could be ‘of the order of one-third to one-half.’ (emphasis added)

London Irvine says if this were to happen, Japan and China could each lose $400 Billion in forex reserve value. Clearly, a USD fall would deal pain here and around the world.

USD Trade Deficit Finance Mover Mike

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