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.
Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: porcupine --''''> who wrote (942)11/5/1998 6:23:00 PM
From: Freedom Fighter  Read Replies (2) of 1722
 
The U.S. Dollar and the German Mark - Greenspan

In Alan Greenspan's talk this afternoon he spoke about currencies. At one point he classified the U.S dollar and German Mark as seasoned well established currencies of comparable high quality.

I disagree strongly. Take current events for example.

In the crisis several weeks ago the German banks took a much more serious monetary hit than the U.S banks. They also have much greater exposure to Russia and some emerging markets. The German economy is also presently suffering from significant unemployment. Yet despite that, the Bundesbank has yet to drop interest rate even though much of Europe already has. This is how a real currency to managed. Price stability and currency value is the most important thing.

On the other hand, at the first sign of trouble, the U.S. Federal Reserve lowered interest rates. Not once, but twice. Anything to prop up the system and excesses.

This is partly why the U.S is the greatest debtor in history. This is partly why we have a large and growing trade and current account deficit. We are constantly flooding the system with money at any sign of trouble and as a result we are flooding the world with Dollars and IOUs.

For now the U.S. dollar maintains it value for several reasons.

1. ILLusion
2. Delusion
3. There are not enough of German Marks or Swiss Franks to be the reserve currency.
4. Governments have effectively demonetized gold for now.

Wayne Crimi
Value Investor Workshop
members.aol.com
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