Summary
BUSINESSMEN meeting in the Swiss resort of Davos at the weekend seemed pretty much of the view that the dollar is going to continue its fall and we may see a two-dollar pound before long.
They may well be right - certainly there is nothing in American policy to suggest the administration has any intention of stopping the dollar's decline. The vast majority of Americans have no idea the currency is falling or, if they have noticed, do not understand its significance, so there is little possibility of a voter backlash damaging the President in this election year. At the same time, the collapse of their currency forces the need for a deflationary readjustment away from the US economy and on to Europe. This allows the Americans to continue their boom at the expense of growth in the rest of the world.See the full content of this document
Extract
Dollar Damage ; City Comment
But if the politics make sense, the economics are still mad. The rise in sterling over ...
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