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US dollar deficit
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newmoon
Veteran |
20-Apr-2006 12:07
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Never in history has a reserve currency shown such a huge yawning deficit. In order to preseve the exrtravagant lifestyles of americans and to finance an unending war in Iraq and Afghanistan it has to resort to the printing press. The flooding of the world with paper money explains to some extent the spectacular rise in prices of all asset classes-stocks property,gold silver ,oil and other commodities. The value of the US dollar is propped up by it's military supremacy-the big stick is used if any oil producing country dares to price it's oil in other currencies . While china and India are building factories the americans are building shopping malls and printing credit cards. The US penny which is made of zinc and copper is worth more than it's face value if melted down. When the economic cycle turns down I wonder what would happen-hopefully it is not too painful. |
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