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Bank of israel - 'Dollar losing to Shekel'

Yet, Americans keep doling out cash to israel and fighting their wars. When will Americans wakeup?

Governor of the Bank of Israel Prof. Stanley Fischer said Sunday night that he expected that the U.S. dollar will continue to weaken in global foreign currency trading, due to the U.S.’s huge balance of payments deficit.

Speaking in an interview on Israel TV's Channel 2’s current affairs program “Meet the Press”, Fischer qualified his warning. “It’s difficult to predict what will happen to the dollar in the short and medium term, in six months or a year’s time,” he said.

“Everyone knew in 2005 that the long-term trend pointed to a weakening of the dollar, so anyone who bet on the dollar back then lost a lot of money [almost every American]. We don’t know how the dollar will fare in the coming months, even as far ahead as next year.”

The shekel appreciated more than 10 percent against the greenback in 2006, and is now trading around NIS 4.2 to U.S. $1.

Fischer, btw, spent seven years as First Deputy Managing Director of the IMF and before that served as Chief Economist at the World Bank. Some things never change.

The question is - will Americans wakeup before it's too late?

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