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


To: SouthFloridaGuy who wrote (73235)10/30/2006 11:03:56 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'Hence the dollar appreciation against those currencies (broadly speaking) over the past 18 months or so, but the depreciation of all those currencies versus gold.'

Yes mutual debasement of currency by all in unison should be very good for gold while keeping most currencies strong relative to all other currencies thus lessening the impact of poor fiscal discipline. But what of long term interest rates in the US given we are the biggest debtor by far? Can the additional monetization of the long end and creation of excess debt go into perpetuity without serious ramifications if all continue within the scope of the current model?