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United States of Zimbabwe

                The stock market is flying up above the 10,000 mark with easy.  This is not unexpected, considering the Fed, Gov and Goldman Sachs are all still trumpeting low rates and stimulus.  However, for every action, there is an equal and opposite reaction.  The US Dollar is taken a beating again today.  Countries all over the world are now facing overvalued assets and inflation within their borders.  They believe that they have no choice but to increase interest rates to fight off inflation.  Of course, this is exactly opposite of what they should do.  What they need to do is what Brazil is doing to curb the overheated Real from causing havoc on their exports.  Tax foreign investors!  This way, you maintain some foreign cash while slowing foreign inflows.  The alternative to this is lower rates and print more of your currency than the Fed prints dollar, but we all know where this would end.

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