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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (40989)	6/24/1999 12:23:00 PM
From: bearshark	Read Replies (1) \| Respond to of 94695

GZ: All of this you are aware of but I thought I would share my thoughts. In reading the FOMC minutes over the last several years, it is clear that they have been increasing their focus on world finance. I read Iqbal's post on the Idea thread also. Without going back to find the Fed document, I will rephrase some parts I remember. The Fed intends to work with other countries' central banks in an attempt "to manage" world finances. They can do this with interest rates or the value of the currency. A country's rates and currency can be tied together and may have an inverse relationship. In the past when the Fed was pressed to weaken the U. S. economy, I noticed that the U. S. dollar would strengthen. It is nothing new for countries to work together to manage the value of their currencies to affect world trade. Sometimes it even works. So, I assume there is an international effort among central bankers to raise the value of the dollar to slow U. S. exports, lower the value of their currencies to increase their exports to stir their economies, lower their own interest rates to stir their domestic consumption, and provide the U. S. Fed with the option of raising rates in a token amount. Let's see if the U. S. dollar moves above 130 yen in the coming months. A selfless world society may keep this working. As I noted earlier, sometimes this works.