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Politics : Israel to U.S. : Now Deal with Syria and Iran
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To: sea_urchin who wrote (11113)6/8/2006 6:07:43 PM
From: Crimson Ghost  Read Replies (2) of 22250
 
The dollar is rallying only because US interest rates are much higher than Europe and Japan and the market expects this differential to widen further in the near future.

This clearly is a temporary situation that cannot last.

Given the huge leverage of the US economy no way can interest rates be hiked much further without touching off a severe recession and total equity market collapse.
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