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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Chip McVickar who wrote (110)5/15/1998 1:46:00 AM
From: paul ross  Read Replies (1) of 3536
 
As a newby to this thread, would like to add my 2 cents.

One potential problem is the US debt at $5.5 trillion and growing. brillig.com
Any impetus to dump US paper for Euros, gold, or whatever would have an immediate impact on interest rates and could start a downward spiral. Over the past couple of months Japan has dumped a substantial number of dollars in its bid to bolster the Yen, causing the Fed to drain reserves and put upward pressure on interest rates. biz.yahoo.com
This scenario coupled with potential other sparks ("oil" wanting payments in Euros) might start a sea of repatriated dollars floating back to our shores.

And for the more conspiracy theory oriented, a scenario as described in the URL below:

#reply-3522496

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