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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (69962)	4/23/2003 2:49:06 PM
From: Sun Tzu	Read Replies (3) \| Respond to of 70976

How else do you support the most widely circulated fiat currency in the world? The previous admin never did much beyond jaw-bonning and token market actions. Jimmy Rogers has been arguing for years that the Fed no longer has the final say because their reserves is much lower than the foreign debt and Fed actions are much weaker than the net foreign flows...for all that matter the Fed could push the fund rates into sky and it would only make a small difference because banks would not raise their rate much. They can't because there is no demand for credit. The same goes for open market operations. If foreigners really chose to dump USD, no amount of Fed buying would shore up the dollar. So you support the dollar via "diplomacy" and token down payments to prove your sincerity.