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Originally Posted by GoldChild
Just remember, interest rates are (usually) put up when inflation rises. Price rises can be caused by increased demand from economic activity and higher interest rates help slow this down but inflation can also be the genuine weakening of the currency. A rise in interest rates may not always compensate for a weaker currency and it might still weaken further. When this happens in the US it will be a sign of genuine inflation and the dollar will really be in trouble.
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Hm... interesting concept, GC.
Is this going to happen?
fs