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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: DuckTapeSunroof who wrote (36969)9/13/2009 4:47:01 AM
From: RMF  Read Replies (1) | Respond to of 71588
 
Much more of the monetary liquidity has been "evaporated" rather than "withdrawn".

There hasn't really been any "withdrawing" yet.

We're between a "rock and a hard place" on this. We're running a $1.3 Trillion deficit THIS year and Trillion dollar deficits for years to come.

You can only put out SO MUCH DEBT before your lenders start asking for higher interest rates. You want to be paying out all that interest in real SOLID USD or would you be FORCED to pay off all that debt in a more "depreciated" USD?

When you start depreciating your currency you're gonna be looking at inflation.

I ACTUALLY think the "world" may be working together on this so everything kinda smooths out overall.