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|Subject: Re: “The End of Dollar Hegemony”||Date: 3/6/2006 11:14 AM|
|Author: jackcrow||Number: 15686 of 35114|
Through the last 2/3 of the Clinton administration the US economic engine provided enough revenue for the US to start to buy down its debt. This had the effect of strengthening the dollar; there was less US debt and thus more competition for it and its underlying currency.
The USDollar rose back then because we had the highest interest rates of any G-10 country, the short-term rise and fall of the accounting fiction known as the US Budget Deficit is totally and entirely irrelevant.
Mean Avg of long bonds 1991 - 2002
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