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Deficits/Debt
December 3, 2007

Could the devaluing Dollar be volatile in the future?

Deficits Debt

"At a time when everyone from billionaire investors such as Warren Buffett and Bill Gross to celebrities want nothing to do with the dollar, a growing number of strategists say the stage is being set for a rally in 2008.

The U.S. budget and trade deficits are narrowing in tandem for the first time since 1995, when the currency gained 8 percent as measured by the Federal Reserve's U.S. Trade Weighted Dollar Index.

'I am confident that the dollar will have a significant rally next year, especially against the euro and the pound,' said Stephen Jen, the London-based head of currency research at Morgan Stanley, who expects the U.S. currency to strengthen to $1.35 by December 2008. `The deficits are shrinking fast.'

The dollar weakened to $1.4661 against the euro at 9:07 a.m. in New York, from $1.4633 at the end of last week."

While Berkshire Hathaway Inc. Chairman Buffett and Gross say investing in U.S. financial assets is a losing proposition as the nation's economic and political dominance wanes, improvements in the deficits may provide a respite for the dollar after it tumbled 12 percent this year."

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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