Alarm bells are ringing at the IMF over the dollar's slide

the imf customarily worries about 3rd world countries and emerging economies... i've heard said that the u.s. financial and monetary situation is, proportionally, worse than argentina before the 2001 collapse...

The International Monetary Fund is in behind-the-scenes talks with the US, China and other major powers to arrange a series of top-level meetings about tackling imbalances in the global economy, as the dollar sell-off reverberates through financial markets.

when you read a quote like this, it may be time to consider moving to higher ground...

'We are in meltdown mode,' said David Brown, chief European economist at Bear Stearns. 'It's all being whipped up into a bit of a selling frenzy. The dollar has a massive portfolio of negatives against it: it's the long-term problems of the trade deficit, and the government's budget deficit.'

[...]

Brown added that the dollar's woes were likely to be exacerbated by central banks shifting their reserves towards other currencies, including the euro.

is washington concerned...? what a silly question... of course not...

He added that with the US current account deficit with the rest of the world worth 7 per cent of its GDP in 2005, the White House and the Federal Reserve would probably be happy to watch the dollar decline. 'I don't think Washington's going to be concerned,' he said.

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