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To: goldsnow who wrote (36384)	7/3/1999 12:17:00 AM
From: Hawkmoon	Respond to of 116762

Now suppose China, Japan, Euro no longer want to be dominated by US Dollar, that further suppose that they are unwilling or unable to make necessary changes to get their economies up...now suppose they decide to gang-up on dollar... Then watch their economies collapse into full-blown depression as their markets collapse and US goods become more competitive versus their goods. The dollar is not vulnerable so long as US productivity continues to outperform its rivals. And the European economy remains a basketcase as they try to assimilate the former Soviet Bloc nations. Let them increase their gold or sell their dollars. Yeah, it may be rough in the short to intermediate term, but there economies will hurt far worse than ours. After all, just why the heck do you think Alan Greenspan is ignoring the current massive trade deficit when it was such a main topic of discussion 10 or so years ago?? Simply put, because the US economy is the only thing standing between prosperity and global depression right now. Don't be fooled by the GNP growth stats were seeing coming out of Asia at the moment. A lot of that is increasing of inventory by US companies in preparation for Y2K as well as renewing confidence in their local economies. But within 2-3 months, I predict another storm equal or greater than two years ago will hit Asia and the contagion will return. Asia's apparent lack of preparation or remediation pretty much insures that their will be another crisis of confidence. If there isn't, it will go down in the history books as one of the greatest propaganda coups ever achieved. Personally, I hope they succeed with their propaganda. I have no desire to see the world thrust to the edge of recession/depression again. But I'm not counting on it. And I don't think Alan Greenspan is either. But to repeat, THE LAST THING Japan, China, or Europe want or need is a strong currency. Having a strong currency does equate to having a strong economy. Only the opposite is correct. Regards, Ron