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Old 11-05-2004, 02:15 PM   #14
jaguar
whig
 
Join Date: Apr 2001
Posts: 5,075
Yelof, depends on the level of trading. While at the moment there is no need to re-align things and yes, it would be a touch messy but in a scenario where the US currency stability is under serious doubt (generally we're looking at a scenario where the deficit increases or remains and current levels for a significant period of time combined with the current buyers of US debt - mostly Asian central banks controlling their own currencies floating their currencies forcing a situation where yields have to raise from their artificially low levels putting more pressure on the federal bank) it is a solution, or part thereof of a very complex series of political and economic machinations designed to deflect some of the impact to avoid another depression.
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