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

To: John McCarthy who wrote (62523)	6/2/2006 3:31:00 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Obvioulsy it is impossible for everyone to sell all of thir dollars. Even if China buys gold, then some gold producer is holding dollars. If China buys oil, then some oil producer is holding dollars, If China converts to Euros then some other player is holding US$. The US sure is not going to be buying US$! Only if China buys US assets will the situation rectify itself. Furthermore it is not in China's best interest or Japan's best interest either one to cause the dollar to crash. Internal demand in China and Japan can not make up for the loss of US consumers for now anyway. Perhaps 5-10 years from now we have a differnt story. I do not believe there will be a panic move in the US$, nor do I believe it will slowly erode over 3 years losing 50% of its value as some here believe. There are too many other problems with other currencies as well as a negative savings rate in the US that will be corrected. The correction of that savings rate will help stabalize the US$. Mish