- The dollar's downward trend has not been broken since
I wrote a column about the subject in December. In fact, the trend seems
to be accelerating. Bill Gates openly stated yesterday he is pulling out
of the dollar and is instead investing in euros. Microsoft's co-founder
has made many mistakes in the past (I write this on an Apple computer,
so I may be biased), but this is a wise move, indeed. He's probably not
the last one to pull out of the U.S. currency.
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- Bill Gates, whose net worth of $46.6 billion makes him
the world's richest person, is betting against the U.S. dollar.
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- "I'm short the dollar, Gates, chairman of Microsoft
Corp., told Charlie Rose in an interview late yesterday at the World Economic
Forum in Davos, Switzerland. "The ol, dollar, it's gonna go down.
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- Gates's concern that widening U.S. budget and trade deficits
are undermining the dollar was echoed in Davos by policymakers including
European Central Bank President Jean-Claude Trichet and German Chancellor
Gerhard Schroeder.
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- The dollar fell 21 percent against a basket of six major
currencies from the start of 2002 to the end of last year. The trade deficit
swelled to a record $609.3 billion last year and total U.S. government
debt rose 8.7 percent to $7.62 trillion in the past 12 months.
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- "It is a bit scary, Gates said. "We're in uncharted
territory when the world's reserve currency has so much outstanding debt.
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- Bloomberg
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- http://www.sebimeyer.com/?p=1229
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