If U.S. goes over fiscal cliff, dollar could fly
From reuters.com
In times of trouble, investors tend to flee to the comfort of the U.S. dollar -- even when the trouble is emanating from the United States. If Congress fails to reach a deficit reduction deal by the end of the year, it will automatically trigger big spending cuts and tax increases in 2013. This so-called "fiscal cliff" would hit the still-recovering U.S. economy hard. But rather than bring the dollar down with it, the automatic spending cuts could be viewed as a sign of fiscal discipline that would benefit the currency. Even if a protracted period of negotiations injects a heavy level of uncertainty into the ...
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