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To: Oeconomicus who wrote (157986)6/19/2003 5:21:57 PM
From: GST  Read Replies (1) | Respond to of 164684
 
The issue is more basic: How long can they afford to continue to finance our deficits? If they run out of steam and cannot pay our bills, then the tide turns and the smart thing to do is to sell the dollar. A current account deficit of 136 billion US dollars is one hell of a thing to finance in one quarter -- an annual rate of over $500 billion! To say it has been going on for a long time is really poor logic.