Reply #25: U.S. Rogue Nation Image Hurts Dollar in Asia [View All]

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pesek&sid=aIEOQx53yalU

Dec. 20 (Bloomberg) -- Being an American overseas these days can be a surreal experience. Virtually everyone, it seems, seeks that 10-minute why-I'm-upset-with-the-U.S. conversation.

Recent stops in Bangkok, Hanoi, Kuala Lumpur, Singapore, Mumbai and Vientiane, Laos, featured myriad such moments, leaving little doubt that anti-American sentiment -- or more to the point, anti-Bush-administration sentiment -- is intensifying in Asia.

And is all this negativity manifesting itself economically? Yes, argues Joseph Quinlan, chief market strategist of Banc of America Capital Management in New York. It won't make him many friends in Middle America, but Quinlan thinks the U.S. image as a ``rogue nation'' is a key force behind the dollar's decline.

``The message from the foreign exchange markets'' of late ``seems to be simply this: The free ride for the rogue nation is over,'' Quinlan argues. ``No more guns and butter, or wads of foreign cash for a nation deeply enmeshed in the Middle East, heavily indebted at home and seemingly disengaged -- some might say -- from the rest of the world.''

The sinking dollar, Quinlan says, ``could be a sign that the world is no longer willing to underwrite the designs of U.S. foreign policy. To a large extent, we believe a rebound in the U.S. dollar could hinge on a revamped foreign policy.''

The Black Market

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As Ampon explained, most people in his line of work in Asia figure the dollar will plunge this year. Asked why, he answered simply: ``Bush will be around a few more years.'' :evilgrin:

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