Quote:
Originally Posted by RawAlex
There is a point where the other governments in the world won't tolerate it. You can expect to see some of the countries to move some reserve action into US dollars to try to prop it up, because it is getting a little too far out of hand. Don't be shocked if all major currencies drop their prime rates slightly to help the US out, it is to everyones benefit at this point.
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Na Alex.. other govts are elected to handle their own currency and same with hedge fund managers and other investors, hence their withdrawal from the market. The debt is overwhelming already, but suppose if there was a firm plan in place to resolve it, there could be a least an effort to help. But dumping more loans into a non-peforming area with no plan in place is not a cure - it just makes the scenario worse.
Sure would be shocked if all major currencies dropped their rates
You'd be lucky to find one country who will screw their own currency and devalue just because of one country. There are far more implications to that and cause others problems and it is not a solution to anything, just another plaster on the gaping wound.
The currency problem is a sympton of bigger issues and caused by these bigger issues. Only one set of people can start a remedy - it's not the responsibility/right of anyone else to interfere. Until these are addressed, currency is unlikely to improve.