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Guest Post: U.S. Dollar Threatened by Fannie & Freddie
by Axel Merk
This article ran for our enrolled users last week as one in a series from respected guest commentators while Chris was vacationing with his family and working on his new book. Enjoy the fresh perspective.
Will U.S. policymakers cause another financial catastrophe and destroy the U.S. dollar by focusing on their own short-sighted political interests? Or will economic reason prevail? While we wish for the latter, we fear the former is much more likely. Unless real reform of Fannie Mae and its smaller cousin Freddie Mac (together the Government Sponsored Entities, or GSEs) is implemented, the consequences for all of us may be dire. Investors may want to take this into consideration when making investment decisions. Future implications may put downward pressure on the U.S. dollar; investments into more fiscally-stable and prudent countries displaying sound monetary policy may become ever more attractive.
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