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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (57437)	7/9/2006 3:16:50 PM
From: Rarebird	Respond to of 57584

>>A DOLLAR crisis will make borrowing 2.5 billion DOLLARs per day from foreign powers like China and Japan virtually impossible, at least at affordable interest rates.<< A weaker Dollar will crimp US import demand while making US exports cheaper overseas and thus help to redress the "global imbalances" - also known as the US current account deficit. Of course Wall Street takes it for given and granted that the rest of the world will just go on lending to the US, despite what they see as government policy favoring a weaker currency. Would you want to lend to a nation in the certain expectation that you will be repaid in a currency whose purchasing power is "guaranteed" to be lower by government policy?