Wednesday, October 03, 2007

A Weaker Dollar is Good For the US?

Andy Sutton from The Market Oracle says that understanding the gold and oil markets are key to understanding how a falling dollar hurts US citizens.

"Since much of our economy is funded with borrowed money, we count on foreigners to recycle their dollars through our markets and economy in order that we remain solvent. When foreigners stop doing this, the Fed will have no choice but to monetize debt and resort to hyperinflation to keep our borrow-and-spend economy satiated with easy money."

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