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  • From: Don Bowen <don.bowen AT earthlink.net>
  • To: homestead AT lists.ibiblio.org
  • Subject: [Homestead] Falling dollar
  • Date: Thu, 02 Dec 2004 10:59:42 -0800

In today's paper there was an editorial addressing the two schools of thought on the fall of the Dollar. One school says it will drop a bit further then stabilize at its right point. They are predicting mild inflation and a difficult adjustment period but little beyond that.

The other school claims a much more dire scenario. Paul Volker (the fed chairman before Greenspan) is expecting a further slide to as much as 40% of its current value. He is saying that if the slide is not arrested then we will see a spike in interest rates, a slowdown of economic growth, and heavy inflation. He is concerned that the fall is endangering oil countries profits and will they demand higher prices and a shift away from the dollar. Foreign investors who have kept up the dollar up may quit and shift investment to other currencies such as the Euro.

Don Bowen
Awl Knotted Up Woodworking
Valley Center, CA http://www.braingarage.com






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