The US dollar is just short of being in a free fall now, some economists are thinking that the bottom could drop out at any time, leading to some very serious issues. Today versus the Canadian dollar, we are at a 13 year high... 2 years ago we were at an all time low. That sort of a swing makes it very hard for businesses on both sides of the border to plan ahead and remain profitable.
Americans will start to see the pain soon, as this swing will start to drive import prices up dramatically, which will lead to the potential of core inflation. Already September's inflation numbers were the highest since 1990, from one report I read.
Inflation can push the prime rate up, which pushes up the bond, which pushes up the costs of borrowing for the government, which in turn pushes harder on the deficit, which in turn pushes the dollar down, that in turn forces the prime rate up... you know how it goes.
Too many tax gifts, too many tax breaks, too much uncontrolled government spending... the vultures are circling the dollar...
Alex
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Let's go to the edge of disaster Push the pedal and go a little faster Let's slam into a wall at ramming speed Let's go to the edge of a mountain Jump off and lets start countin' Hit the ground and tell me if it bleeds
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