Dollar falls...[see below]...Bush looses in a landslide.

[ochazuke]

Dollar falls on foreign exchange markets today. (You read the news).

The U.S. economy is kept afloat by a huge capital inflow from other countries that helps offset our now huge deficits in international trade and government expenditure.

If foreigners get spooked and think there's a better place to invest (and with Bush at the helm....) the capital outflow would cause a fall in the dollar, and a fall in U.S. equity markets.

It feeds on itself: Fearing an outright collapse, the capital outflows get more intense until you have a market panic.

Higher interest rates alone (certain to be part of this scenario) would wreck the U.S. economy. Unemployment might reach double digits before November, 2004.

Now, who would get blamed for this?