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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (98797)5/1/2001 9:49:11 PM
From: Spekulatius  Read Replies (2) of 436258
 
>>annualized growth of M3 in the US has been nearly 21% over the past quarter. every week brings a new profligacy record w.r.t. money supply expansion. <<
The US$ reacts favorable to interest rate and inflation. This sounds strange - my explanation is that the US$ is not driven by real interest rate differentials, but by speculation , preferably in NASADQ stocks. So printing more money makes the US$ more valueable because it helps the NASDAQ stocks. This sounds clownish and it is, but I think the incoming speculation money stabilizes the US$, not the fundamentals of the US economy.
If the US$ cracks, the NASDAQ will fail as well and then the speculator will have currency losses on top of share prices losses...
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