The Dramatic Impact of the Dollar's Devaluation

By: dsvabeachdems
Published On: 7/13/2007 7:06:21 AM

To demonstrate my assessment of the Bush administration's devaluation of the dollar and its effects called out in an earlier post, look at the sale of ALCAN to Rio Tinto yesterday (a British company paying with British pounds). Rio Tinto outbid Alcoa, an American company, $101 to $77 per share. So Rio Tinto paid over 31% more than Alcoa offered in US dollars.

In June 2001, the early days of the Bush administration, the pound was worth as little as $1.36. Yesterday it was at about $2.03. So the pound's value has risen some $ 0.67 or over 49% against our currency. Simple math and you see that Alcoa would have easily outbid Rio Tinto in pre-Bush dollars. And the fallout from this will likely be a fire sale of Alcoa as other investors get the idea. Yes, we are going to see a lot of mergers and buyouts in the coming months as the bargain hunters begin to pick at the carcasses of parts of America's industrial base.

Hard to blame this on terrorism and the war. Great Britain has managed quite well under similar conditions. The economic storm clouds are gathering. The stewards of our economy and industry are failing.

Cross posted at VBDems.org - Blogging our way to Democratic wins in Virginia Beach! Go RK!

Comments



"Wall Street, Iraq and the Declining Dollar" (john4_SamRasoul_2008 - 7/13/2007 2:54:07 PM)
To: Undisclosed Locations ; Rep. Bob Goodlatte (R-VA) & Ron Paul (R-Tx) ; Senators Webb ; Warner ;  Reid  &  Hagel ; Bush II Régime
Cc: Tucker, Cynthia - Journalist ; The Sojourners ; sub@commondreams.org ; Speaker Nancy Pelosi ; Richardson, for President ; Rasoul, Sam, for Cong. 6th ; Prof. Thomas J. DiLorenzo ; nightly@nbc.com ; Mr. George Will, Journalist ; Mr. Eric Margolis, Journalist ; Maher, Bill [Contact] ; eppn@episcopalchurg.org ; Editor_N_Va_Daily.com ; Editor, The Freelance-Star ; Dr. Sidney Blumenthal ; Dr Karen Kwiatkowski ; ChairmanGOP @ RNC ; MarshallAdame4Cong2008
Sent: 15 Jun 2007
Subject: " Wall Street, Iraq and the Declining Dollar "

Dear Gentlepersons:

Please consider this article about the declining value of the US Dollar:

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Article below available: < http://www.commondre... >

Published on 13 Jun 2007 by "The Nation"
Title: "Wall Street, Iraq and the Declining Dollar"
by Ken Miller

The disastrous impact on the economy of George W. Bush?s response to the attacks of September 2001 is still being measured. On Friday of last week the Bush Administration announced that it would not renominate Gen. Peter Pace as chairman of the Joint Chiefs of Staff. The Administration?s decision to throw a loyal supporter overboard avoids a messy confirmation hearing that would have further focused a war-weary nation?s attention on the past. But sometimes looking backward can help us anticipate the future. ...

[... This article continues here: < http://www.commondre... > ...]

... If our military cannot secure oil by force, and if oil is destined to cost us more and more of a declining currency to buy what is available, then ?brand USA? is in trouble. When Bush leaves office, this country will have to begin the difficult task of reversing some very bad trends in the military, fiscal, monetary and energy areas. The pollution of his legacy transcends mere politics.

[Ken Miller is chairman and CEO of Ken Miller Capital LLC in New York.]

Article above available: < http://www.commondre... >

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If you occupy a Constitutional Office, please respond with your reaction to this article?

With every good wish, john4_SamRasoul_2008

For reflection: "If you think yourself too wise to involve yourself in government, you will be governed by those too foolish to govern." ~ Plato

As of 13 Jul 2007 I have not heard from anyone holding a Constitutional Office.