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To: Toddsterpatriot
Again, you have not explained the lowering value of the US dollar! There has to be a reason. It was the premiere currency of the world for decades and now there is recurring talk of nations switching to the euro to replace the dollar. Just misbegotten economic understanding?
When foreign governments or individuals invest their dollars in the US, they expect a return, either in yearly profits = money paid out in dollars leaving your country, or to sell those assets at some point at a profit= money leaving your country. Its that simple. Trade deficits are wealth leaving your country. remember they could convert those dollars to euros on the open market, and see where the value ends up. That is why the dollar is going down.
36 posted on 08/17/2007 6:42:52 AM PDT by WILLIALAL
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To: WILLIALAL
Again, you have not explained the lowering value of the US dollar!

Some other currencies have higher yields. So what?

When foreign governments or individuals invest their dollars in the US, they expect a return, either in yearly profits = money paid out in dollars leaving your country, or to sell those assets at some point at a profit= money leaving your country.

When they sell assets, they still hold dollars.

39 posted on 08/17/2007 6:47:43 AM PDT by Toddsterpatriot (Ignorance of the laws of economics is no excuse.)
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