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Answer:
Yea, All commodities and currencies are relate to each other in some or the other way. Forex speaking, how can a country survive without inflation? The answer is they cannot, and my speculation is that when the next crisis hits – and be warned we are approaching the time when it will – when the economies do double dip in the recession bowl – the US will revert to deflating the debt even though they had promised not to.
The level of spending going on in the US is unsustainable and will only serve to hurt everything in that touches it. The Chinese have reasons to be moaning and the Russians might get their wish of a new world reserve currency to replace the Dollar (they are the only ones who used the word “replace” – everyone else jut says “alternative”) but this will not be good for the world or for the Forex market. The US economic advisory team needs to start cutting back on not only their current expense, but their planned ones as well – the world is getting nervous and when news like 7 Trillion in debt in one year gets the attention it so deeply deserves, make sure you are not holding onto greenbacks.
