649. Timmy. You still believing Europe can't hurt America?

Remember Timmy Geithner's comments re the European crisis not hurting America's economy? See posts #551 and 586. Well, here is another that disagrees with that assessment. John Williams, the San Francisco Federal Reserve Bank President, states "Europe is the most important "wild card" for U.S. growth, he said, and a crisis that escalates there could severely damage the U.S. economy." However, more important in this article is what the Federal Reserve, in particular Ben Bernanke, will bring to the table in the form of rate cuts (printing virtual money and more debt) which would lead to his target inflation rate of 2%. You hear me right. Since Europe, China, and England have turned on the presses for their currency, our defense in Currency War III is to lower our dollar similarly so we keep our exports selling abroad and, thus, can keep our employees working (NOT necessarily lowering unemployment). It's really sad that we have a Treasurer and President who can't see reality! Meanwhile, Brussels have kept the doors open for further ECB rate cuts beyond the latest one! Is this the rush to the bottom (lowest dollar value and lowest Euro value)? You know China is pegged to the dollar, so their currency drops accordingly without further action. Good time to plug a book I finished a while back: Read Mr. James Rickards' his book "Currency Wars, The Making of the Next Global Crisis." Well, we have the rest of the summer to weather out the currency storms -- must be Global Warming that causes the Wars. So, kick up that A/C and read more books until September comes and the market responds to the political moves by Ben and crew.