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Re: Mr. Bill post# 20335

Wednesday, 10/14/2009 7:34:25 PM

Wednesday, October 14, 2009 7:34:25 PM

Post# of 29692
The future value of the oil is what Iraq will rely on for years and years to come to fund it’s budgets… government spending.
If they have any left over they can add it to currency reserves which would allow them to increase money supply. That will mostly be done through issuing more currency, not raising the value of currency already in the hands of people.

Japan and China both have massive trade surpluses with the US. Even as the $ declines, they add more and more to their reserves. In fact, as it declines it directly leads to more growth in their dollar reserves. Goods and services cost more $$$ as the $ declines in value. So they get more.
Iraq will benefit slightly from the same thing… as the $ drops, oil prices will rise, but Iraq needs the money to rebuild the country/economy and that will take decades.

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