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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (39776)10/19/2003 7:10:40 AM
From: elmatador  Read Replies (1) of 74559
 
<<getting 1% on MQ's money>> don’t worry Mq. Wait for the capital flight out of US and the US will have to shut its interest rates to the stratosphere if they want the outside world to subsidize its standard of living.

Look to Brazil. They are paying those crazy interest rates because they have a public deficit to service and have to import foreign savings.

That because they can't print colored paper which generated galloping inflation in the 80s. Can't print today. Have to import money.

Once capital starts flowing from the countries that have it but no productive economic activities, to the countries that lack capital but has productive activity, it will be tough for the US. It will have to jack up interest rates to service their debt.
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