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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: sea_biscuit who wrote (70489)10/25/2007 5:20:19 PM
From: 8bits  Read Replies (1) | Respond to of 116555
 
And if foreign CBs don't purchase US debt at low yields, then the US government can!

True, they could (and have in the past..) but the US dollar would depreciate even further and faster and eventually the current account deficit would rectify. The foreign central banks are allowing the US to misbehave. Who's worse the drunk or the bartender who keeps on filling up his glass "on credit"? Both are actors in a bad scenario.