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

To: aknahow who wrote (75445)	12/12/2006 4:07:22 PM
From: GST	Respond to of 110194

If you want to look at the dollar you need to use the current account deficit that includes financial flows -- capital to finance our deficits is one of our major financial imports and interest paid on our current debts is a major financial export neither of which is captured in the trade deficit. The cost of importing capital will not fall if the dollar falls -- on the contrary the cost of renting money from abroad will increase substantially as payment for the higher currency risk associated with a falling dollar.