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Will the dollar devalue as government spending goes unchecked?
*Dow Theory Letters, Richard Russell, February 3, 2006
“The administration will ask Congress for another $120 billion to pay for the wars in Afghanistan and Iraq. This will bring the total since 9/11 to $440 billion. The $120 billion is intended to pay for operations into next year, but already Budget Director Joel Kaplan says this will not be enough. The war in Iraq is costing about $150 million a day; the war in Afghanistan is costing an additional $27 million a day. The new request will not include any money for reconstruction in Iraq. The administration will also ask Congress for $18 billion for hurricane-related expenses on the Gulf Coast. Russell Comment — forgetting intermediate moves, no currency can hold up long-term in the face of this kind of wild, almost insane, spending.”
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