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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (45150)	1/11/2009 1:13:10 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 217769

The cause of hyperinflation in Brazil was the fact that Brazil owed large debts denominated in Dollars and other currencies - a legacy of Brazil's prior attempt at capital hogging. To pay these debts Brazil printed Cruzados to convert into Dollars, pushing down the exchange rate of Cruzados and increasing the price of all goods Brazil needed to import. The United States owes U.S. Dollar debts. If the U.S. chose to pay off all these debts with U.S. currency, they could easily do so without affecting the currency exchange rate. It's unfortunate the U.S. debt does not have an early call provision, because paying off all U.S. debt would be one easy way to quickly increase demand in the U.S. economy. .