SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : All Clowns Must Be Destroyed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: AllansAlias who wrote (29496)4/26/2000 7:19:00 PM
From: patron_anejo_por_favor  Read Replies (1) of 42523
 
Sounds like a good strategy. I'm personally placing precious metals bets along the same lines.

My leading candidate for economic "rod-thrower" is a currency crisis. In Mr.Moto's column (see link a few posts earlier), he referred to a speech by Paul Volker in Thailand a few months ago:

"In the world of money - in the true architecture of the international financial system -something more surprising is taking place. Directly contrary to the widely accepted textbook models, more and more smaller countries - particularly in Latin America and Eastern Europe - have questioned the value of an independent currency. A number have already taken the major step of abandoning their own currency altogether, or approximating that approach by linking the local currency to a major international currency by means of a currency board.

In effect, those countries are saying that they are willing to forego the financial autonomy and flexibility afforded - at least conceptually - by a national currency. What they expect to get in return is the stability and integrity - and the relatively lower interest rates - inherent in use of
an internationally strong currency, the dollar or the Euro.

I trust they are not misled in their thinking; use of an international currency cannot prevent speculative excesses and a banking or financial crisis in response to misguided policies. Budgetary discipline and effective control of costs will be essential. Circumstances can easily be envisaged - the text books are replete with them - in which the loss of monetary flexibility will be regretted."

Wise worders from the man who saved America's bacon in 1980-1982.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News