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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Lucretius who wrote (3530)2/18/1999 1:36:00 PM
From: Hawkmoon  Read Replies (1) of 81996
 
supply exceeds demand, silly.

Then why is the dollar going up in value AT THE SAME TIME the Fed continues to inject liquidity??

The Fed is printing money to meet demand and prevent that demand from excessively valuing the dollar which would be have even greater effects on a balance of trade deficit.

At the same time weakening the dollar is preventing even more negative pressure on weak currencies trying to recover in S. Korea and Brazil. Weakening the dollar helps to lessen the capital flight from troubled economies.

Regards,

Ron
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