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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Mike Johnston who wrote (82558)6/11/2007 9:05:15 AM
From: GST  Read Replies (2) of 110194
 
The Canadian dollar, to pick just one currency, has moved from 68 cents to 94 cents in the last few years. Ditto the pound and the Euro. Asian currencies have been held back for political and economic reasons that are rapidly losing importance. A devaluation against Asian currencies is coming, and as it arrives we will see higher interest rates in the US even as the dollar falls. That will cause US price inflation (forget this baloney about how inflation is "only" about money supply) even while the US economy grinds to halt. I expect a strong yuan and, with a lag, a strong yen.
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