The TPTB will be trying to offset the dollar drop incredible volitility will be the coin of the realm. Interesting times
AFX News Limited OECD warns rebalancing of US deficit may drive dollar down sharply 05.23.2006, 06:15 AM
LONDON (AFX) - The OECD has warned that the eventual rebalancing of the US current account gap 'looks increasingly unavoidable' and will send shock waves across the globe, starting with a slump in the dollar's exchange rate.
The OECD said in its world economic outlook that the depreciation faced by the dollar could be 'of the order of one-third to one-half.'
The adjustment in the deficit would 'need to induce a sharp slowdown in US domestic demand and that this would have adverse spill-over effects on other economies both through the trade and asset revaluation channels,' it said.