Re: The US Dollar (spend it fast as you can)

[Tom Walker]

Rakesh Narpat Bhandari wrote,

>And the size of the CAD (and trade deficit) is not correlated with 
>the value of the dollar; if it were there would be some reason to 
>expect Tom W's scenario of an imminent mass dumping of dollars.  Why 
>does there seem to be no correlation? Ellen's analysis seems to 
>provide an answer.

The tag line "spend it fast as you can" was meant to allude to the line in
the song, "I don't give a damn about a greenback dollar, spend it fast as I
can" not to any conviction of mine that the demise of the dollar is
imminent. If... IF... there is a mass dumping of dollars, the precipitating
event will most likely NOT be the fundamentals of the dollar itself. My
guess is it will probably not even be a "financial" event.

The lack of correlation between current account deficit and value of the
dollar has nothing to say about future events. In fact, the term
"correlation" has no more scientific standing with regard to the issue than
do the words to the song I cited.

Tom Walker
Bowen Island, BC
604 947 2213