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Politics : The US Deficit -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (10)	10/8/2007 12:44:29 PM
From: Lazarus_Long	Respond to of 32

My responsibility to do what? High and low are relative terms. OK. Clarification: Pck the peaks amd bottoms so there is enough difference between them thaqt we can pay commissions and still make money. :-) China et al are happy to sell us goods, which equates to buying dollars, at last year's exchange rate, last month's and today's. Tad is suggesting that the decline in the dollar might cause them to "dump" dollars for something else. Seems to me, that constitutes buying high and selling low. Do you disagree? Yep. They are exchanging their goods for a depreciating asset. Where a few months ago they sold us a widget for $13, worth 10 euros at the time, that $13US is worth only 9 euros now. The US has the advantage of being the international reserve currnecy now- -the currency the Bank of International Settlements accepts and pays. It is also the currency oil is priced in. If France wants to buy oil, it must first accumulate ahorde of US$ first. Unless someday is done to stop the declne of the US$, it is inevitable that both those situations will change.