US $ going down, price of PSP going up?

NohWun

Member
From Yahoo news (Reuters):
The dollar slid on Friday after Federal Reserve Chairman Alan Greenspan said foreign demand for U.S. assets, which has financed the country's massive current account deficit and propped up the dollar, would eventually fall.

In a speech at a European bankers' conference in Frankfurt, Greenspan said: "It seems persuasive that, given the size of the U.S. current account deficit, a diminished appetite for adding to dollar balances must occur at some point."

Greenspan also said the United States should help correct trade imbalances by cutting its record budget deficit or face painful consequences.
If you plug the announced Japanese price of the PSP into a currency converter today, you get:

19,800 Japanese Yen = 192.121 US Dollar (using www.oanda.com)

And that may go up and up as the dollar goes down. (You can also expect gas prices to go up, as well as anything else that's imported.) You can thank the guys in the White House for this situation, since they're spending money like there's no tomorrow (4 years from now it won't be their problem anymore).
 
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