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  • Is the U.S. Dollar Headed for a Mighty Crash? Part I [View article]
    We are certainly heading towards dollar debasement, just a couple of headlines today:
    Timothy Geithner - "Obama administration is committed to reducing the federal budget deficit after concerns rose that the U.S. debt rating may eventually be threatened with a downgrade."
    Pimco's Bill Gross: "U.S. eventually will lose its AAA grade. "

    Strength of currency is dependent on credibility of the US Govt. and its policies. US has abused its power as issuer of reserve currency - world feels deeply cheated. Japanese Yen has appreciated from 300 Yen/$ to now 100Y/$ over last 20/25 years, how do Japanese feel. Same with China now - Yuan had to appreciate 20% in last 2/3 years. So our trade partners keep losing money by holding $s. They would realize the folly and engineer an exit - will not happen overnight, but China definitely is taking definite steps towards that.

    Creditor nation’s currency are sought – that is how Britain gained and then lost its position, and now US too will.
    May 21 18:21 pm |Rating: +7 -1 |Link to Comment
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