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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (1973)	7/20/1999 4:38:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 3536

More from Armstrong including additional comments on Credit Suisse: pei-intl.com

To: Henry Volquardsen who wrote (1973)	7/20/1999 11:21:00 PM
From: Lee	Read Replies (1) \| Respond to of 3536

Henry, Thanks for your reply. The link again works. To summarize, the articles states that for equilibrium to be restored rates must increase in the US and decrease elsewhere if they can (Japan being an example of where rates are tough to go lower). The change of rates will restore currencies to a more natural level given economic performance. Of course a 7% 30 yr bond yield will hurt equities in the US, which are above the equilibrium levels. This could hurt US spending and therefore depress non-US economies. Thus we are on a slow boat to 7%. The flip side of "7% depress non-US economies" is that the currencies of non-US economies go lower as a result of the 7% and this is good for the world. Of course Mr. Makin says that the Fed is now guiding only the US so my inferences on ROW are mine alone ;) Regards, Lee