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 : ClownBuck Deathwatch

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: patron_anejo_por_favor who wrote (2)8/20/2000 11:10:38 PM
From: per strandberg  Read Replies (1) of 329
 
1) ECB has to respond to the rising inflation figures in Europe. Basically, I think they are happy to devaluate the Euro to protect the trade balance.
It is strange that rising oil and commodity prices affect us so directly here in Europe, when there are no signs of inflation in the US. Could that have anything to do with how the calculations are done? Nah...out of the question! Unthinkable!
2) BOJ's first priority will always be to protect their export. With one hand they will gladly intervene and buy Dollars while the other is nudging the rate up, careful like hedgehog lovemaking, not to upset the ROI of all the money invested abroad.
3) As long as paper gold dominates over physical gold, the price can be kept down indefinitely. Just study the charts of the POG. As soon as the gold has rallied in Asia, it is immediately traded down in NY.

The day of reckoning for the Dollar will come.
Either the trade gap will close (and that has do be done with goods, not services, necessitating drastically changed exchange rates) or the outflow will increase until it grows into a deluge that will drown the Dollar.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext