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  • It was sarcasm, but I do still have a graph for you:

    To the question: "will the downgrade of their debt status make dollars more or less desirable", my guess was 'less'.

    You pointed out that: "A depreciated but stable currency in a higher interest environment could be considered more desirable."

    I pointed to the US interest rate being very low (with some fuck off fancy graphics done on a computer)

    To which you said: "The US cost of borrowing will increase due to the ratings downgrade."

    At which point I said: (or asserted if you like) "This all explains the US' eagerness (let's be honest, insistence) to have their credit rating downgraded."

    What that line indicates is confusion, the message I am getting from you isn't clear.

    Balki (I think) is saying this: if interest paid on bonds goes up (the interest the US pays to borrow money, not the interest the fed sets), and the cost of the USD is low, and you have faith that the US government won't default (ultimately, if you have faith in the USD as a currency), you could see the USD become more desirable.

    Maybe you got this already and there is something more subtle which you're trying to hash out.

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