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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: KyrosL who wrote (33891)5/19/2003 1:09:01 AM
From: smolejv@gmx.net  Read Replies (1) of 74559
 
>>drop in the dollar has not been accompanied mass dumping of American securities by foreigners<< we're all trapped, I'd say: what's the alternatives?... The main asset of US is J6P anyhow.

>>on the one hand it will manage to depreciate the dollar against the Euro and Yen, thus gaining advantage in world markets vs European and Japanese manufactured products << here go the beamers OK, but what about Chinese products. It just means China will increasingly displace European goods - you can shorten US out of this equation -. One of the reasons I guess for increased investment in China btw (if you cant beat them join them).

>>On the other hand it will manage to keep domestic inflation down, since Asian countries continue pegging their currencies to the dollar << until they'll have their cellars full of treasuries themselves. Let's see how Chinese consumption develops with time. Would be great for BMW (g).

>>So AG may manage to postpone the crash at least until Bush is safely reelected for his second term.<< With terrorism (WMDs yet to be found, homeland security) there's enough issues to shout anybody down.

>>The big loser in all of this may turn out to be Europe.<< A lot of problems, as I already indicated a couple of times, are home made. Dont need US to sin. One of my silent expectations is the boost from new EU members (to the tune of cca 100 M consumers) with <10k€ per capita income and wanting more.
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