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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: arun gera who wrote (17675)2/15/2009 1:40:51 PM
From: axial  Respond to of 71456
 
Agreed, devaluing the dollar would work - but only if the US alone did so. Otherwise everybody gets into a race to the bottom, in an effort to boost their exports.

Example -

1930s beggar-thy-neighbour fears as China devalues

telegraph.co.uk

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The discussion may be academic anyway, if USD devalues as anticipated.

The flip side of devalued USD is increased import cost - especially with respect to oil.

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Every upside strategy has a downside: a zero-sum game.

Jim