That is why the ultimate result of the global credit crisis is a dollar crisis transmitted through the factory economies of Asia as well as Japan.
Once domestic bond investors regain consciousness and they will most likely do so in concert with foreign holders of US debt and currency a debt and dollar crisis will emerge.
Far from an energy crisis rooted in a short supply of oil, we have at present a dollar crisis that is creating the false illusion of energy scarcity.
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In an acute dollar crisis, Congress would be forced to act, and the action that would best address the problem would be to define the dollar in terms of gold.
But Dimon managed the multibillion-dollar crisis with ease.
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Most importantly, investors still buy U.S. bonds and the U.S. dollar in a crisis.
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Even with Fannie and Freddie inflating the bubble and the Fed and the rest of the Bush Administration weakening the dollar, the crisis never would have become so unprecedentedly destructive but for a seemingly arcane accounting principle called mark-to-market, or fair value, accounting.
Skeptics will point out that these troubled Asian currencies had just been pegged to the dollar and that the crisis came nonetheless.
Add a resurgence of sovereign debt woes stemming from Europe and the situation in Greece, and it seems like things are only getting worse. (Read Oil, Dollar Fall Amid Greek Crisis And Global Slowdown).
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Last year China held its currency steady against the dollar throughout the global financial crisis, while others tumbled.
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It reflects the stark reality of what we've inherited: a trillion-dollar deficit, a financial crisis, and a costly recession.
It reflects the stark reality of what we've inherited a trillion-dollar deficit, a financial crisis, and a costly recession.
That began to change a few years before the crisis as the dollar fell and emerging markets' growing appetite put pressure on global production capacity.
Robin Bhar, senior metals analyst at Credit Agricole Corporate and Investment Bank, said as geopolitical factors wane, the focus is shifting toward the U.S. dollar, the Eurozone debt crisis and inflation concerns.
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The lira has lost half its value against the US dollar since Turkey first lurched into crisis in February.
The Portugal debt downgrade and overall EU debt crisis situation supported the dollar index as it pressured the Euro currency.
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Since late July it has risen 12% against the dollar, as the government debt crisis in the euro zone has eased.
For once, American tourists have something in common with international currency traders: This summer, they are all wondering how the Greek financial crisis will impact the dollar.
The other major cause of the financial crisis was the cheap dollar monetary policy of the Federal Reserve, reflecting the benighted policies of President Bush and his Treasury Department.
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True, for the moment the U.S. government is in the very fortunate position of being able to borrow at lower interest rates than before the crisis, and the dollar has actually strengthened.
The EU debt crisis is supportive to the dollar index as it has pressured the Euro currency.
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So what does the lackluster performance of the U.S. dollar potentially portend as the latest fiscal crisis unfolds?
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After a crisis-related interruption the dollar has resumed the slide that began in 2002, and emerging economies are likely to grow faster than America for years to come.
The U.S. never had another liquidity-shortage crisis after 1907, but the dollar remained linked to gold until 1971.
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The bottom line is that when the threat of a crisis begins to grow, the dollar is where investors put their money.
And the local currency's 18% depreciation against the U.S. dollar since the onset of the Asian financial crisis has brought costs way down.
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