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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (5038)6/17/2001 10:58:51 PM
From: Hawkmoon  Read Replies (1) of 74559
 
Inflation....

"The main causes of rising inflation worldwide have been higher oil and food prices. Core rates excluding those items are generally lower."

Since oil is denominated in USD, and necessitates the selling of non-USD currencies to pay for energy, this is the double edged sword that comes from engaging in deliberate strategies aimed at undervaluing their currencies, rather than restructuring their economies and unfunded governmental liabilities.

The result is stagflation.

Now the question will be if the USD continues to surge as capital flows to safe harbors, or whether it will go to gold.

Hawk
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