Consumer confidence plunging--again

Despite promises of green shots by the Obama administration, mounting job losses and an economy stuck in reverse have resulted in a loss of consumer confidence. Perhaps people are opening up their Christmas shopping bills.

http://www.zerohedge.com/article/weekly-abc-consumer-confidence-plummets-11-holiday-bills-arrive-following-weak-payrolls-numb

Editor's note: if I stopped posting negative blog entries on the economy, I wouldn't have anything to blog. I apologize.

Russia and China joining the anti-dollar party

It's not just rumor and rhetoric anymore:

http://en.rian.ru/russia/20091014/156468599.html

It's a resonating chorus of allies, enemies, and trading partners. In fact, foreign governments hate a weak dollar for several reasons:

1) USDollar weakness makes exports to the US more expensive, dampening their export-driven economies
2) it reduces the value of their reserves, which comprise of dollar-denominated assets like US Treasuries

Ultimately, dollar weakness should be stimulative domestically for these countries, as imports are cheaper, but it reduces the competitiveness of their exports. And since their economies depend more on exports and less consumerism, the weakness of the dollar threatens their attempts to stimulate their own economies.

The deal-breaker is the fact that the US Treasuries in their reserve accounts decline in value, and these IOU's are promises of repayment from a bankrupt borrower--the US government.