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To: regli who wrote (50763)5/8/2006 2:15:13 PM
From: Tommaso  Read Replies (1) | Respond to of 116555
 
>>>If the U.S. were to defend its currency, the dollars would in fact return home as it has to sell other currencies in order to strengthen the dollar <<<

And where will it get these currencies to sell? Print its own Euros and Yen?



To: regli who wrote (50763)5/8/2006 2:55:21 PM
From: ild  Read Replies (2) | Respond to of 116555
 
<<<U.S. WILL have to defend its currency>>>

That's a big assumption. What I see is that the US wants lower USD not higher. Didn't Bernanke say that the US has "Capital Account Surplus", so our big trade deficit is THEIR problem.

federalreserve.gov

I just don't see the US defending USD. Not to mention that it doesn't have anything to offer in exchange for USD.