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Subject:  Re: “The End of Dollar Hegemony” Date:  3/6/2006  11:14 AM
Author:  jackcrow Number:  15686 of 35930


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

Austria 6.19
Belgium 6.42
Denmark 6.70
Finland 7.36
France 6.25
Germany 5.82*
Italy 8.49
Japan 2.67*
Netherlands 6.29
Norway 6.97
Spain 7.95
Sweden 7.43
Switzerland 4.13*
U.K. 6.98
U.S.A 6.13

*Lower than the USA

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