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Reply #7: Not sure I follow all of that [View All]

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German-Lefty Donating Member (568 posts) Send PM | Profile | Ignore Mon Apr-25-05 09:15 AM
Response to Reply #5
7. Not sure I follow all of that
:* The Fed will be forced to raise interest rates in order to sell more bonds to finance our mushrooming deficits
How was that linked to yuan? Are are you just saying because of the slowdown in retail sales, tax revenue will be less? Or are you saying because China won't buy dollars to keep it's currency down anymore, the deficits will require higher rates?

:) China turns it attention to Europe. China starts draining more mfg jobs from EU than US
Not sure I follow this. They are hitting EU jobs right now. The Euro is high against the dollar and the Yuan is low against it. So the Yuan is really low against the Euro.

If anything it will help our exports (Germany's #1 in the world in exports) compete in the US, EU, and elsewhere.

;-) Stagnation in European and Asian markets makes the US still look like a good deal.
Again, I'm not so sure.
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