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To: JohnHuang2
Great post.

With regard to the ever-increasing spending by the government, I specifically asked a friend (Ph.D. in Economics, long-time banking bigwig of a MAJOR bank, was director of their global strategic planning for 10+ years)

WHY

nobody ever points out that the gub'mint is $20T in the hole, and simply printing more fiat money???

His answer is that the currency that the global economy works off of is the dollar; it is the ONE universal currency that everybody accepts as the standard... For this one reason alone, the other countries do not challenge the USA on its' debt...

However, when I pointed out the increased spending, the sagging real GDP, the lowered interest rates (which will increase inflation), etc., and asked how long it will be before the other countries notice Lady Liberty has no clothes...

He couldn't give me an answer, and simply said "it's never happened before..."

Somehow, this didn't comfort me much...

2 posted on 07/10/2002 1:08:08 AM PDT by Capitalist Eric
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To: Capitalist Eric
"He couldn't give me an answer, and simply said "it's never happened before..."

That is unnerving.

5 posted on 07/10/2002 2:38:15 AM PDT by brat
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To: Capitalist Eric
Your assumption that lower interest rates increase inflation is bogus.
6 posted on 07/10/2002 5:09:13 AM PDT by Phantom Lord
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