Actually, most foreign governments hold dollars for three other reasons.
1) They get paid in dollars and usually buy U.S. made goods or use U.S.
services.
2) They invest in dollars because U.S. treasuries are still the safest and
we still have some of the highest interest rates in the developed world
(longer dated treasuries around 3.50 to 4.40%). I trade bonds and know who
is buying from me.
3) Most commodities, such as oil, are denominated in dollars. Oil trades in
dollars no matter who they buyer and seller is. If France buys oil from
Libya, the transaction is in dollars. This is fact.
----- Original Message -----
From: "Dustin Williams" <dustinewilliams@gmail.com>
To: <dakota-truck@dakota-truck.net>
Sent: Saturday, February 09, 2008 5:56 PM
Subject: Re: DML: Made in China
>
> The turks prefer dollars over their own lira even in their own country
>
>
>
> On 2/8/08, droo <03dakotacc4.7_4x4@comcast.net> wrote:
>>
>> On Tue, 05 Feb 2008 12:37:29 -0500, Dustin Williams
>> <dustinewilliams@gmail.com> wrote:
>>
>>
>> >
>> > It's a bit more complicated that it was in the days of the gold
>> > standard, but the principle remains the same, print more money and it
>> > becomes worth less.
>> >
>>
>> We don't even have to print more money to make it worth less. It just
>> has
>> to be outside this country and in someone else's hands. That makes it
>> undesirable. No one is going to use dollars in their own country to buy
>> anything. So they need to sell it back to the US for another currency
>> that the US is trying to get rid of. And because we import more than we
>> export, we don't have a large supply of other currency to trade for the
>> US
>> dollars. Since they can't get rid of the US money and they can't spend
>> it, it just isn't worth anything.
>>
>> --
>> -droo
>>
>> 2003 Dodge Dakota Club Cab
>> V8 4X4 Manual Transmission
>> Bridgestone Dueler A/T Revo's
>> Can-Back Soft Topper
>> Rhinoliner
>> Alpine CD Head Unit w/ XM
>> Alpine 6 3/4" Speakers
>> Sony 8" Subwoofer
>> Q-Logic Custom Fit Enclosure
>>
>>
>
> --
> Sent from Gmail for mobile | mobile.google.com
>
>
>
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