Do you really need more evidence that blocking the ports deal was a bad idea?
How's about this: "Arab Central Banks Move Assets Out of Dollar"
{...} Middle Eastern anger over the decision by the US to block a Dubai company from buying five of its ports hit the dollar yesterday as a number of central banks said they were considering switching reserves into euros.The United Arab Emirates, which includes Dubai, said it was looking to move one-tenth of its dollar reserves into euros, while the governor of the Saudi Arabian central bank condemned the US move as "discrimination".
Separately, Syria responded to US sanctions against two of its banks by confirming plans to use euros instead of dollars for its external transactions.
The remarks combined to knock the dollar, which fell against the euro, pound and yen yesterday as analysts warned other central banks might follow suit.{...}
Oh well done, Congress. You should be proud of yourselves.
Here's my question to all you eager beaver Congresspeople: you blocked the ports deal---and Republicans in particular betrayed their President---for cheap electoral gains. Are you brilliant Congresspeople ready to face an electoral wrath if the dollar tanks, and inflation booms?
Because the President is safe from that sort of scrutiny this time around.
You brilliant Congresspeople, however, aren't.
{Hat tip: Martini Boy, who has further thoughts, as do his commenters.}
Posted by Kathy at March 14, 2006 01:57 PM | TrackBackIt won't be inflation that damages congressional careers. I response to falling currency value and inflation, look for the FED to make some bolder moves on interest rates. No more of this quarter point increase. If this gets bad they will have to get serious.
All of those people who refinanced with shiny new adjustable m0rtgages when rates were at all time lows are going to get creamed.
Which of course means the end of the housing boom.
We might as well re-elect Carter and get it over with.
Posted by: Stephen Macklin at March 14, 2006 05:50 PM