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Will the dollar devalue as government spending goes unchecked?

*Dow Theory Letters, Richard Russell, February 3, 2006

“The administration will ask Congress for another $120 billion to pay for the wars in Afghanistan and Iraq. This will bring the total since 9/11 to $440 billion. The $120 billion is intended to pay for operations into next year, but already Budget Director Joel Kaplan says this will not be enough. The war in Iraq is costing about $150 million a day; the war in Afghanistan is costing an additional $27 million a day. The new request will not include any money for reconstruction in Iraq. The administration will also ask Congress for $18 billion for hurricane-related expenses on the Gulf Coast.   Russell Comment — forgetting intermediate moves, no currency can hold up long-term in the face of this kind of wild, almost insane, spending.”

*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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