Thanks for the link k.
Is the Fed paranoid about y2k?...Or is this just prudent contingency planning?...You tell me...(Now consider the coupon passes and repos they've done lately...Hmmm?)
cnn.com
Fair Use/etc...
>>>NOVAK: Sir, Federal Reserve Chairman Greenspan has said everything is going to be OK in the global financial markets. Now Robert Mondell (ph), this year's Nobel Laureate, has suggested that currencies be fixed to gold at least temporarily to avoid these fluctuations and the sky (ph)-sided Guilanisky (ph) who I know you talked to -- has a column running "The Washington Times" this weekend that says same thing.
Do you think that is a -- something that should be considered?
BENNETT: Absolutely. I think. You see one of the things that makes the currency trading around the world possible is the computer revolution. Because you couldn't keep track of all of those fractions and fractions of difference between the value of currency A and currency B without computers.
And if they should fail, even in a relatively small percentage, you could disrupt currency trading around the world and cause some kind of emotional panic. And fixing them all to a single peg, whether it's gold or copper wire, or pork futures or whatever -- gold makes the most sense. But you pick a commodity and fix them all to that peg, you obviate the need for those kinds of calculations for a relatively short period of time.
Now, it's not going to happen. The suggestion has been made and it's been talked about. It's not going to happen, but theoretically I think it's an idea very much worth considering.
HUNT: You know it seems that we have avoided the worst fear of a panic leading up to January 1.
BENNETT: Yes.
HUNT: I want to ask you a question of delayed panic. Chairman Greenspan also testified the other day that at any given time one to two percent of ATM machines don't function, during normal times. BENNETT: Yes, that's right.
HUNT: If they don't function on January 1 and January 2, is there a fear that -- that there -- it will be irrational but real to people.
BENNETT: Sure. I tell everybody for example, don't pick up the phone at one minute after midnight to see if there is a dial tone, because if everybody does, there won't be a dial tone and it doesn't have anything to do with Y2K.
HUNT: There is no reason to panic.
BENNETT: So, yes, we have interruptions in the power grid all the time. We have interruptions in the flow of oil around the world all the time. We have all kinds of accidents that take place in computer land and those that happen on January 1st, people will say were causes by Y2K.
HUNT: Where will you be on January 1st, Senator?
BENNETT: I will be in the central command center in Utah. Utah has done what I think most states have done, and what we've done here in Washington. They've created a command center to which all of the information relating to Y2K will flow that night. And at the invitation of the governor of Utah, I will be in that center.
I will have an Iridium phone that's not dependent on anything else, connected here to Washington so that if something unexpected does happen, I can be reached. The Federal Reserve has handed these out because Chairman Greenspan says if we have to do something heroic, we have to communicate with Congress and we want to be able to do that even if everything else fails.
HUNT: We're going to take a break now, Senator. But we will be back in just a minute to talk to Senator Bennett about his relations with John McCain.
(COMMERCIAL BREAK)<<<
Heroic?...What the h*ll could THAT be?
|
