European Tribune

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There is one possible exception to this. If the value of the dollar were to take a sudden plunge, then the value of the debts held by Japan and China would go with it. They could panic and start unloading them before it got worse. That would likely accelerate the plunge. Japan and China have many reasons why they would not like to see a scenario such as that and thus they continue to support the status of the dollar. Russia, however, does not have a vested interest in the value of the dollar. As their reserves from the energy market continue to grow, they acquire the power to precipitate such mischief.
by Richard Lyon (rllyon@gmail.com) on Sun Aug 27th, 2006 at 10:41:48 AM EST
[ Parent ]
All excellent points.

WHEEEEEEEEEEEEEEEEEEEEE!
by Drew J Jones (blahblahblah@blahblahblah.com) on Sun Aug 27th, 2006 at 10:50:02 AM EST
[ Parent ]
Excellent points indeed. I'd love to hear what the economists among us (or even the investment bankers :-) have to say on this.

Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.
by Bernard on Sun Aug 27th, 2006 at 12:44:36 PM EST
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