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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Jim Willie CB who wrote (13126)5/3/2004 1:04:30 PM
From: ild  Read Replies (2) | Respond to of 110194
 
Well, it's known fact that China has overall trade deficit, but it doesn't matter, it passes USD onto its trade partners. The fact is: somebody will end up with those USD, and they will buy treasuries with it. It will take much lower USD to reduce our CA deficit. Also US doesn't have internal savings to fund our budget deficit, so foreigners will fund it, and guess what, they will buy more US treasuries with it.