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To: GST who wrote (71721)	8/4/1999 3:22:00 AM
From: Bill Harmond	Read Replies (1) \| Respond to of 164684

GST, We're not Argentina. We're the USA. The country with the world's reserve currency: US Treasury bonds. Those markets are too broad and deep and liquid to become destabilized permanently without a big change in US fiscal policy. Right now we're retiring bonds. That makes them better investments than gold for foreign central banks.

To: GST who wrote (71721)	8/4/1999 4:31:00 AM
From: dbblg	Read Replies (1) \| Respond to of 164684

GST, I understand the scenario, but I don't see it happening. It was actually more likely before US consumers became "Shoppers of Last Resort." But now I have to get back to work. Especially since, if you are right, I'm going to have a much smaller nest egg to fall back on in a few days. :) Best of luck. Edit: am I the only one who has been getting a LOT more of those "message not found" errors when I hit "Publish" lately? It seems to happen in both the beta and the classic SI. Grrr.

To: GST who wrote (71721)	8/4/1999 10:10:00 AM
From: Robert Rose	Read Replies (2) \| Respond to of 164684

<The missing (or only implicit) aspect in this article -- as with most of the people who post here -- is the stunning lack of awareness of how serious these issues become when a country is terribly dependent on foreigners for capital. This is a compounding factor. US spending and 'investment' patterns create a trade deficit which makes us reliant on the 'good-will' of foreigners to cough up enough in investment capital to offset the trade deficit -- which is why we are so hyper, hyper sensitive to the changing interest rate environment. If foreigners reallocate on the basis of 'better investment opportunities' as the article states, they are inclined to consider moving their money out of the US to protect themselves from currency risk. > Ok, I'll bite. We have been running bone chilling trade deficits for 30 years. Our federal budget deficits are declining. Rising interest rates attract foreign capital. China/Taiwan, impending Yuan devaluation, Kosovo, etc. all spell an uncertain global political and economic climate. The Internet Revolution wrings inefficiencies from our economy, making it the wonder of the world. What am I missing here?