Propping Up The Behemoth

By Murray Bourne, 05 Dec 2004

Is the US close to going under? The current spending spree, brought on by inflated house prices, a low-taxing and high-spending president and a crazy world that continues to buy those Treasurys like they are going out of style (which they will, soon), cannot continue indefinitely. As the US$ continues to tumble, will the central banks and private investors of Asia, the Middle East and emerging markets keep investing there? No way - this dollar rout has got a long way to go yet.

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