Re: Evaluating Managed Funds
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Edit to add one more quote from Paul Volcker, the man who was replaced by Alan Greenspan, "There is a 75% chance of a dollar crisis some time in the next five years." Again, Mr. Volcker should be at least somewhat more of a distinguished economist than me. That quote was not taken out of context at all. This problem is very real, even if the White House and the WSJ refuse to talk about it. Pick up a Financial Times or Economist and you will see for yourself.
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Don't forget, Warren Buffet also has much of Berkshire's cash reserves in currency plays against the dollar.
The fact is, the efficiency of the bond market is irrelevant, because the bond market is manipulated by asain countries trying to keep their currency low. It is possible this could go on indefiniely, but I think it is much more likely that the Chinese will eventually adopt consumerism and will no longer want to finance the trade imbalance.
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