Monday, January 17, 2005
USD On Front Page Of WSJ
The Wall street Journal has a page one article As Dollar Weakens,Hidden Strengths May Stave Off Crisis
Just as an individual who spends more than he earns must borrow or sell some of his assets to pay his bills, the U.S. finances its current-account deficit by either borrowing or attracting foreign investment in its businesses and stock market. Lately, it has borrowed heavily by selling Treasury bonds and other IOUs, often to foreign central banks. As a result, the U.S. has gone from having net foreign assets equal to 9% of GDP in 1978 to net liabilities equaling about 25% now. Mr. Eichengreen says there is no historical precedent for such a large economy being so heavily in debt to the rest of the world. Timothy Geithner, current head of the New York Fed, recently highlighted the risks: "We are significantly more dependent today on the confidence of the rest of the world in U.S. economic policy."We know how this will end, we don't know, however, if it will be in 10 years, 5 years, 1 year or next week. We know how it will end because we have already experienced currencies without metal backing; the Continental and the Confederate Currency.
In 'Torture' On Trial The WSJ concludes
Rather than keeping quiet and absorbing all of this political criticism, maybe it's time for the Bush Administration and its allies in Congress to demand some legal and moral clarity for those in the CIA and military who are responsible for breaking the likes of KSM, who did after all plan the September 11 attacks. In President Bush's first term, that task would have fallen to John Ashcroft, who didn't mind bucking the Democratic-media consensus. We hope soon-to-be Attorney General Alberto Gonzales has learned from his own rough confirmation hearings that failing to fight back gets you nothing but more abuse.