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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: friverola who wrote (2706)12/26/2000 12:47:55 PM
From: Robert Douglas  Read Replies (1) of 3536
 
I think interest rates are too high around the world. In many places, they have been propped up to protect currencies from falling, primarily against the dollar. Therefore, the strong dollar and the high U.S. interest rates have had the effect of depressing demand throughout the world. Inflation rates, in most of these countries, don't justify the high rates.

Now that interest rates in the U.S. are about to decline, you will see rapid rate cuts throughout the world and demand strengthen as a result. This will prevent the slowdown in the U.S. from causing undue damage to the rest of the world.
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