Anatole
11-16-2006, 07:29 PM
Robert E. Rubin, Treasury secretary under President Bill Clinton, and former Federal Reserve Chairman Paul Volcker said foreign investors probably won't keep increasing dollar holdings, raising the risk of a slump in the currency.
Failure by the U.S. government to shrink its budget deficit may spook the central banks, hedge funds and others who have been buying Treasury notes, Rubin said. Volcker said the U.S. borrowing requirements raise the risk of a "crisis" in the dollar as soon as the next two and a half years.
"It seems almost inconceivable that this will continue indefinitely," Rubin, who now chairs Citigroup Inc.'s executive committee, said in a videotaped message for a dinner hosted by the Concord Coalition yesterday in New York.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a4rpYkt9vI.Q&refer=exclusive
Failure by the U.S. government to shrink its budget deficit may spook the central banks, hedge funds and others who have been buying Treasury notes, Rubin said. Volcker said the U.S. borrowing requirements raise the risk of a "crisis" in the dollar as soon as the next two and a half years.
"It seems almost inconceivable that this will continue indefinitely," Rubin, who now chairs Citigroup Inc.'s executive committee, said in a videotaped message for a dinner hosted by the Concord Coalition yesterday in New York.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a4rpYkt9vI.Q&refer=exclusive