War by Other Means- French President Fires a Warning Shot
Barely three months into the destruction of the dollar at the hands of the Federal Reserve, the rest of the world beginning to get a little queasy over its free fall. Gee go figure.
According to a story this morning from across the pond, New French President Nicolas Sarkozy has fired a new shot across the U.S. monetary bow and the Fed itself.
From the story today by Ambrose Evans-Pritchard:
"The French president, Nicolas Sarkozy, has warned the United States Congress that the US risks triggering "economic war" if it attempts to devalue its way out of trouble by allowing a relentless slide in the dollar.
The stunning remarks came as the greenback plunged to a record low of $1.4731 against the euro, causing a chorus of angry protests from industrial leaders in France and Italy. The dollar breached $2.10 against sterling for the first time since the early Thatcher years in 1981. On Wall Street the Dow tumbled 246.40 to 13,414.50.
Mr Sarkozy spared no sensitivities as he launched into a full-blown attack on the Bush Administration. "The dollar cannot remain solely the problem of others. If we are not careful, monetary disarray could morph into economic war. We would all be its victims," he said." (Emphasis mine)"
Morph into an economic war"? Ponder that one for a moment.
That’s some pretty tough talk from a man that has been widely reported lately as being one of our new best friends. But then again, it wouldn’t exactly be the first time that money ruined a friendship now would it?
First China and now France.
The green back is on the run and the rest of the world knows it.
