Eardley Factor Articles: Home: A Strategy Markedly
Improving the Probability of TV Marketing Success
The Eardley
Factor and You
Marketing
Success
Do Your Ads
Match The Eardley Factor Standard of Excellence?
EardleyFactor
Confidently Predicts Bush Victory
Teresa Heinz-Kerry's
Democratic Disconnect
Why John
Kerry Lost
Fox
News 100 Ads Eardley Factor Evaluation
Sublime,
Subliminal, Secrets and Shambles
CNN 100 Ads Eardley
Factor Evaluation
MSNBC 100 Ads
Eardley Factor Evaluation
ABC 100 Ads Eardley
Factor Evaluation
Fox News
37 Ads Eardley Factor Evaluation
Hillary
Rodham Clinton, Our Next President
Eardley
Factor Gives Mrs. Snowball the "Cold Shoulder"
Predicting
Election 2008 Through the Lens of Eardley Factor Analysis
The
Race to the White House
Obama
on the Slide
`Walking
the Plank' or `Jumping Ship?'
McCain
Back from the Brink
Neuromarketing
the Next Big Idea?
Market
Research the Poor Relation
'Head
On' Proves the Point
Dollar Woes Spell Doom
Smell:
The Sense We Neglect
Bits and
Pieces
Primary
Dyspepsia
Don't
be afraid of the 'Holy Grail'
Mother's
Milk Can Turn Women On!
For Love
or Money
When
Life was Brutish and Short
Is
Bob Prechter Right?
Torture?
What Torture!
Dollar
Weakness Now Critical
Telling
it like it is
Dollar Woes Spell Doom
Once upon a time, not too long ago, the Greenback was called the 'almighty'. But that was then and now is now. The financial world is awash with tales of doom and gloom which is having a major unsettling effect on confidence in the once invincible reserve currency. Eardleyfactor gave its analysis months ago before most of the world realized it was happening. The greed, the games, the irrational exuberance all played their part. Even iconic Federal Reserve Chairman Alan Greenspan does not emerge unscathed, though now he is blaming his erstwhile master G. W. Bush. The situation is now so complex with so many global players involved, it would take a miracle to bring about stability without the US economy and its people being badly bruised.
The huge trade deficit which has been allowed to run and run was initially to blame. The rest of the world had come to depend on US growth and the US borrowed huge amounts to fund. It was a vicious and doomed scenario. The so called 'carry trade 'especially with Japan only exacerbated the situation. Some have even suggested that the Iraq war was really fought to strengthen the dollar by force. If that were ever true, clearly that policy has failed spectacularly. Iraq and Iran are now actually talking to each other and may even form a Shia alliance. Hindsight is a wonderful thing and if one listens very carefully in the closets of the White House voices may be heard intoning, ''Come back Saddam, all is forgiven.''
Adding to the current woes, China and Russia now hold so many dollars
that were they to flood the market with them the dollar would collapse.
Not that this will play out anytime soon. The consequences would be hard
for everyone involved but China is aware of the existence of this card
and 'The China Daily' recently referred to it as the 'Nuclear Option.'
To put it bluntly, USA is between a rock and a hard place. There seems
to be no escape.
The British seem to have abandoned Basra to its fate, however hard they
disguise their recent pull-out. US troop numbers are only sustained by
preventing anyone leaving the service.
The latest potential bombshell is the alleged report that the Saudis
are not intending to follow the Federal Reserve Board's recent interest
cut for the first time in its history. If this does occur then a tipping
point of monumental proportions may have been reached which could destroy
the dollar. Everyone, it seems, is heading for the exit doors.
The only solution is too painful politically to contemplate. A return
to 'real money' reserves, good housekeeping (see Thatcherism!) and taking
whatever steps are necessary to work towards the elimination of the deficit.
Next year the Election will take center stage. It hardly needs worth saying that no politician with half a brain would dare suggest even more pain at this time. Wage stagnation, health care reform, latent racial tensions and house prices plunging all conspiring to produce an unenviable cauldron of bile for the new incumbent.
Anyone in favor of a world currency?
Robert Jack Eardley, M.D.
Robert Francis Eardley, Cert. Ed., B.A.
3366 Commodore Drive
e-mail: robertfrancis@eardley.org
Lexington, Kentucky 40502-3602
(859) 229-7714
For those interested e-mail
inquiry@eardleyfactor.com
or
robertjack@eardley.org