Dollar May Drop 20% More, Harvard’s Ferguson Says

The dollar will extend its drop versus the euro over the next two to five years, falling as much as 20 percent to an all-time low under a widening U.S. budget deficit, Harvard University’s Professor Niall Ferguson said.

Policy makers favor the dollar’s slide as a means of supporting a recovery from the worst economic slump since the Great Depression even as they voice support for a strong greenback, Ferguson said in an interview on Bloomberg Radio.

A weak dollar is “the simplest solution to most of America’s problems right now,” said Ferguson, author of “The Ascent of Money: A Financial History of the World.” “We are likely to see 1 percent to 2 percent growth unless exports take off, and that’s what everyone in Washington is quietly hoping: If the dollar keeps sliding, then maybe we can get some traction on exports.” (more)

Recession Will Be 'Full-Blown Depression': Strategist

This global recession will turn into a "full-blown depression," Nicu Harajchi, CEO of N1 Asset Management, said Friday, adding that global stimulus hasn't come down to Main Street.

Wall Street is making money, while consumers aren't, Harajchi told CNBC.

"We have seen the G20 coming out with cross border capital injections of $5 trillion this year… But a lot of this money hasn't really come down to Main Street," he said.

"When it comes down to corporate America, corporate Europe or even in Asia, in Japan, we are not seeing Main Street making any money," he said. "Consumers are losing their jobs. They are struggling with their mortgages, with their credit. And we are just seeing this continuing." (more)

Federal Deficit Hits All-Time High $1.42 Trillion

The federal budget deficit has surged to an all-time high of $1.42 trillion as the recession caused tax revenues to plunge while the government was spending massive amounts to stabilize the financial system and jump-start the economy.

The imbalance for the budget year ended Sept. 30, more than tripled last year's record. The Obama administration projects deficits will total $9.1 trillion over the next decade unless corrective action is taken.

As a portion of the economy, the budget deficit stood at 10 percent, the highest since World War II, according to government data released Friday. (more)

World Financial Report, Oct 16, 2009

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The Economist (October 17th - October 23rd 2009)

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Foreign Policy - November/December 2009

Foreign Policy explores the issues, people and agendas that shape the political world. These pages bring you unsurpassed depth and political insights on global trends in economy and security issues. You can check out reviews of important books not published in English. Leading foreign journalists from around the world share their insights and expertise. Foreign Policy is a hit with policymakers, business leaders and scholars.

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Business Week (26/10/2009)

* The hard sell. How retailers are fighting for the hearts & minds of the new consumer.

* Inside the business war against tax reform.

* Michael Dell's. Extreme makeover.

* The spectre haunting GE.

* What happens if the dollar crashes.

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