Will the U.S. Trade Deficit Inevitably Lead to Monetary Crisis? [Archive.org URL]

With a trade deficit of $400 billion, and a net foreign debt of $4 trillion, the U.S. is headed for monetary meltdown, says C. Fred Bergsten, director of the Institute for International Economics. Bergsten, predicted that the dollar will drop in value by 20% to 25% sometime during the next three years. His advice to the government: Do keep money in the bank and pay down debt; don’t adopt the tax cuts proposed by Congressional Republicans. {free registration required}

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