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Originally Posted by lemans
Without the Asian countries funding US, the US dollar should be around 1.50 to the Euro and the Canadian dollar should be .85 to the US dollar. The overall fundementals says the US dollar will go down. So i'm quite bullish on gold (although i'm not a gold bug). In fact, i'm bullish on precious metals and base metals.
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If the dollar weakens, of course, then interest rates must rise to continue to attract foreign funding of the national debt. Which means a nasty shock for people with adjustable-rate mortgages.