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

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To: GraceZ who wrote (222857)2/20/2003 1:50:26 PM
From: Ahda  Read Replies (1) of 436258
 
The investment drives other economies . The question then becomes does that investment have a great enough impact on this economy.

You can apply one answer but it is necessary to view it as a whole.

It then becomes how great of a of a return can you receive for the dollar. Then one has to think in terms of cost efficient which means a manageable debt base and political security that is included in the decision to hold currency of any specific nation.

The answer to me is in the employment figures which will as time goes on increase the deficit in a the tax base. I don't know if anyone has done any research on the larger scope of the undercounter economy. As payroll figures decreases ease of collection changes drastically. I believe this could lead to far to many services traded in lieu of dollars. This inturn depletes tax revenue.

When you have the deficit we have you need additional dollars to meet the debt figures. Additional dollars in a slow economy which includes foreign investment become inflation which further erodes the value of the dollar.

Theoretically your statement is accurate but i don't think it will work out quite as you anticipate.
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