elevated by DemFromCT. See also Krugman via Melanie.The euro hits a new record high (via Atrios)
"There's an overwhelming belief ever since the U.S. elections that the dollar has got quite a way to go down," said Chris Furness, senior currency strategist for 4Cast research in London.
gold is up
Gold continued its push to higher ground Wednesday, consolidating its position at levels last seen more than 16 years ago. Spot gold was lately bid at $442.50 an ounce, up $2.70. Likewise, gold for December delivery rose $3.30 an ounce to stand at $433.80 in electronic trading
and consumer prices rise
retail consumer prices were up 4.2 percent in the month that saw oil futures reach record levels. Gasoline prices rose 8.6 percent during the month and heating oil was up 8.1 percent.
Over the long run, Bush's fiscal policies are bound to drive us into ruin. Let's not forget that the Great Depression came in the middle of 12 years of uninterrupted Republican rule and rape of the economy.
This time around, we have 1) the budget deficit creating a lack of trust in our economy such that even the IMF is worried; 2) oil prices going through the roof as a result of the instability WE have created in the Middle East and the fact that China is buying up every spare drop of oil on the world markets; 3) the fact that the rest of the world hates us is not inspiring much interest in investing in the U.S.
With the dollar in free fall, interest rates on the way up, inflation rising, what's next? Well, I overheard a little tidbit a couple of weeks ago at a meeting here in Washington to the effect that at the rate things are going, nobody will want to buy our bonds until they go into junk status.
Will it take another Great Depression to bring the Roosevelt coalition that Dean talks so much about back into existence? Will the masses in the red states have to be starving before they realize that having a job and food on the table is more important than whether gays can marry?