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To: Strategy
Its very simple supply and demand. As you create more dollars people demand less of them. For every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond. The supply of dollars is going through the roof, so the value of the dollar must fall.
4 posted on 03/06/2009 9:27:20 AM PST by FightThePower! (Fight the powers that be!)
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To: FightThePower!

Before too long the only thing the dollar will be good for is toilet paper.


5 posted on 03/06/2009 9:45:28 AM PST by Ev Reeman
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To: FightThePower!
....so the value of the dollar must fall

Compared to what? The fact is that the other currencies are in even worse shape, except perhaps the yuan. Compared to gold, it has already fallen quite a bit.

6 posted on 03/06/2009 10:36:44 AM PST by expatpat
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To: FightThePower!
For every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond.

The Fed buys every bond the Treasury issues? OMG! You're stupid!

9 posted on 03/13/2009 9:56:04 AM PDT by Toddsterpatriot (Havoc has been back since September. Or was it April?)
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