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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (68330)	9/28/1999 12:48:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

Mike, You may be right but I don't think the evidence bears that out conclusively in the last 3 or 4 years. The last time the dollar was on the skids marked the starting point of an enormous increase in the dollar reserves of central banks. Maybe they thought it was good deal at that time, but you could also conclude that they were plugging the hole while private investors were looking elsewhere. When the dollar regained firm footing and was blessed with strong foreign private inflows, suddenly they stopped accumulating and in fact were net sellers. This seems more logical. In the last few months foreign central bank holdings have slowly started increasing again. It's hard to make the case that they think our treasuries are suddenly a good deal again with the current account deficit exploding. Maybe a few years ago but not now. It's going to be tough to convince me their trading activities are in the interests of the public, taxpayers, or their own profit. I believe if they can make a buck while advancing the government and both domestic and global financial interests, they'll be all for it. But if those interests are out of sync, they will throw tons of money out the window to protect bankers, brokers, government and other vested interests at the expense of taxpayers and the public. In my mind that means demonetizing gold and/or generating greater trust in fiat money to the best of their ability. Wayne