Has a lot to also be due to foreign debt. If they buy you cheap, if they lower the value of your currency, it makes it more expensive to pay them back.
10 posted on 11/29/2006 7:03:38 AM PST by edcoil
(Reality doesn't say much - doesn't need too)
I think you are on the right track. Currencies vary relative to each other based on expectations of inflation. The market is betting the crats will pursue inflationary policies.
if they lower the value of your currency, it makes it more expensive to pay them back.