Sam, Don't get me wrong. I am in favor of floating currencies. The problem is, they increase market volatility and make investors skittish. The only way you can get yahoos to pay the current bloated prices for stocks in the US or Hong Kong or most of the world, for that matter, is to run a scam like "the new paradigm," the "technology revolution," (tech has only been revolting since either the discovery of fire or the wheel, whichever came first -g-), a "balanced budget by 2000," etc. Currency insecurity undermines all such scams.
The only reason I would assume the $HK would collapse without govt. support is that it has collapsed without govt. support. My predictions may be off base sometimes, but my ability to read the newspaper remains solidly intact. -g- And, the $HK came back after the govt. had second thoughts yesterday. MB |
