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Answered 2006-12-08 07:07:57

As i understand it has quite a bit to do w/ exporting/importing-also the demand of the money. When the US does stupid things international biz starts trusting the US govt (and its currency) less begin to demand more interest from the dollar. You may want to look into M3. This is the amt of money that the govt prints. The US govt recently stopped announcing it and it is a big problem but no one seems to care.

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