Pressure Grows On G7 To Agree Dlr Devaluation

[Pale_Rider]

One might consider buying gold ...

http://www.amtddj.inlumen.com/bin/djstory?StoryId=Cqvy:WaebqLqWmde2mtG

LONDON (Dow Jones)--U.S. President George Bush is being urged to signal a dollar devaluation of up to 20% to rebalance the global economy ahead of Friday's Group of Seven and International Monetary Fund meetings in Washington, the U.K.'s The Business newspaper reported.

Senior U.S. administration officials in Washington have over the past few days tried to influence the White House and U.S. Treasury to put pressure on the G7 to agree to a dollar depreciation in its final statement, the newspaper said.

Recent data have shown the U.S. current account and trade deficits running at record levels, and economists have said a dollar depreciation is needed to rein these in.

The euro was quoted at $1.2260 in late New York trade Friday, compared with $1.2273 on Thursday. The dollar was fetching Y110.64 versus Y110.63, and CHF1.2624 versus CHF1.2598. The pound was trading at $1.8041, up from $1.7982.

Boy, the Bush Administration and Republicans has really screwed-up this country.

[sinkingfeeling]

1. No!! Then I want be able to move if * wins the election!!

I'll be on my pension only and if the dollar goes lower against the Euro, I'm sunk.

[denverbill]

2. Hell, it's only devalued 50% against the euro since he took office.

What's another 20%?

After all, does anyone really care if gas goes to $2.50/gallon and food prices continue their steep climb? After all, we got a $400 tax refund.

[fedsron2us]

3. Is China going to float the yuan ?

Its peg against the dollar is the main cause of many of the current trade imbalances in the world. Without the removal of this tie there can be no meaningful devaluation of the dollar.

[Pale_Rider]

4. The latest info I can find is ...

... that China will only gradually remove controls.

http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=6354030

BEIJING (Reuters) - Chinese Premier Wen Jiabao pledged on Tuesday to push ahead with reform to make the yuan currency more flexible, but left analysts none the wiser about the timing of any significant change.
Wen made the comments before a historic meeting between China and the Group of Seven leading industrial nations later this week, at which the thorny issue of yuan reform is expected to be near the top of the agenda.

"We will further advance the reform and forge a mechanism which is more adapted to the changes in market supply and demand, with still better flexibility," the official Xinhua news agency quoted Wen as saying.

..snip..

China has repeatedly said it will loosen currency controls only gradually, and that it must first make progress in cleaning up its banking sector, turn around ailing state-run companies, and create tens of millions of new jobs.

Yep, more American jobs to be off-shored to China ...

[54anickel]

5. Plaza Accord II n/t