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["Don Bowen" <don.bowen AT earthlink.net>]

http://economistsview.typepad.com/economistsview/2008/09/fed-watch-regar.htm
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"4. What will be the consequences of flooding global financial markets with
more US Treasury debt? We will get another lesson in the world's tolerance
for absorbing low-yielding US assets. As long as foreign central banks
continue to buy US debt no question asked, the lesson of the Reagan years
hold true - deficits don't matter (unless of course, we set off another
burst of global liquidity that fuels commodity prices). If global financiers
balk at acquiring the debt, then deficit will matter, and domestic interest
rates would rise quickly. Place your bets, but realize that betting against
the Bank of China has been a losers bet."

 

Don Bowen  KI6DIU

http://www.braingarage.com/Dons/Travels/journal/Journal.html