Devaluation threatens investors
By John Schroy, on March 30th, 2009 | 
In the financial crisis, the US Treasury took steps to protect the dollar as the world reserve currency, allowing AIG funds to pass through to foreign banks and engaging in currency swaps with foreign central banks.
However, the Pelosi-Reid Congress, by unprecedented domestic spending, has raised a real possibility of future high-level inflation. It will be up to US voters whether government finances return to a reasonable basis. The Federal Reserve cannot neutralize the negative impact an out-of-control Congress.
Decline of the dollar
By John Schroy, on June 20th, 2007 | 
Since 2003, the US dollar has fallen almost 50% against the Brazilian Real. What caused this to happen and what does it mean for the future of the dollar?
The reason for the strong real is the excess of Brazilian exports over imports. Government policy resulting in extremely high internal interest rates attracts holders of these dollar reserves to invest in short-term Brazilian debt.
However, not all is rosy in Brazil.
Stockbrokers lose clout
By John Schroy, on January 26th, 2007 | 
Securities exchanges are being transformed from “stockbrokers’ clubs” into profit-oriented companies selling services to customers. Long the ‘masters of the universe’, stockbrokers are expected to become less influential. Free from the constraints of small broker-dealers, demutualized exchanges are in the midst of rapid modernization and dramatic change. Computerized trading, book-entry settlement, central depositories, and cross-border exchanges are now the norm, not the exception.
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