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Strategies & Market Trends : Waiting for the big Kahuna

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From: Harvey Allen10/19/2004 7:37:17 AM
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From the peak in this cycle, February 2002, through September 2004, the dollar has fallen only 23%. The current account is now approaching twice what it was when it finally bottomed in 1988. So if we use the current-account "adjustment" as a guide, we should multiply the 42% decline by a factor of two to determine just how far the dollar must fall before solving the current-account problem - that's 84%!

Ominous: The US deficit vs the dollar


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