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Jump to First Unread Post International banking and economies--huh?
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mnehr Offline
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International banking and economies--huh?
It is not we are 'giving' them money so as much as we are supplying a liquidity of currency to help stabilize the US dollar and the foreign markets. Most other countries use the US dollar as a 'secure' base to back up their markets and economies. During times of crisis, even in the US, many foreign countries turn to our dollar as a relativity safe place to put their investments. Just as their countries are investing in the dollar, so do individuals. However, if the demand for the US dollar far exceeds the supply of the dollar, the cost of the dollar skyrockets. This devalues their own currency, thus causing a major downturn in their own economies.

What the treasury is trying to assure is that the world economies remain as stable as possible and people still turn to the US dollar as a source of security.

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09-13-2001 02:09 PM
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International banking and economies--huh? - mnehr - 09-13-2001 02:09 PM