Dutch Central Bank Sale Announcement Imminent? Message Board

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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: sea_urchin who wrote (19031)	9/17/2003 6:22:22 PM
From: philv	Read Replies (2) of 81176

Hi Searle: I have often wondered about the extent of advantage given to the $US simply because it is the reserve currency of the world. It must be truly huge indeed. Firstly, dollars are held in accounts, private and government all over the world inorder to transact daily business. Secondly, central banks carry dollars to settle accounts and to back up their own currencies. The total must be in the trillions. Money for which the US has received goods, but which will never be redeemed or called back. And, when they decide to increase the money supply which should cause a devaluation of the currency, these same entities do their utmost to prop up the dollar, not wanting losses in FX. "According to recent Fed reports, foreign investors poured $101 billion into U.S. Treasury bonds during the second quarter." financialsense.com Maybe Greenspan is right, you don't really have to manufacture anything, as long as others are willing to accept your (overvalued) currency. An interesting situation which will go on until it stops.

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