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Strategies & Market Trends : The coming US dollar crisis

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To: Amelia Carhartt who wrote (1496)10/15/2007 8:16:34 AM
From: Real Man  Read Replies (2) of 71456
 
Who knows, maybe they will be right. Read Mish, Russ,
Minyanville, etc. Their main point is that
liquidity is credit, so as credit evaporates, money supply
shrinks. So far we have not really tested their ideas: we
now have 14% growth of M3, so credit liquidity is not exactly
shrinking, rather, it is rapidly expanding. I
do think, however, that a major credit contraction will be
bearish for USD, but that's because I don't get their
arguments. How will USD rally if USD denominated debt is
held by foreigners?
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