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Beyond that I simply odn't know, but anyone pouring money into dollars instead of euros right now has to be delusional.

We have deflation setting in in my neighborhood.  (We're gonna need a bigger boat stimulus, Mr President-elect.)  Not too severe yet, but we'll talk when unemployment's at 8% or 9%.  So dollars aren't the worst thing to be holding right now, and if you're (say) China, after buying all those T-bills over several years -- well, shit, you did pretty well selling to the panicked morons on the Street as they were diving for cover.  "Cash is King" and all that.

I wouldn't pour money into dollars now, as I think the stimulus will be close enough to correct to get the job done.  Knowing Benny and the Inkjets, I'd advise that the principle of "Don't Fight the Fed" likely also applies.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Mon Jan 12th, 2009 at 05:20:15 PM EST
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