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To: Mark Bartlett who wrote (43622)	10/23/1999 7:58:00 AM
From: Alex	Respond to of 116759

Common currency for Asia suggested SINGAPORE: Hong Kong has floated the idea of a common currency for asia saying it can make a beginning in this direction by moving to a common currency with Singapore, reports Reuters. "Asia now embraces so many individual sovereign currencies that it is probably very vulnerable. It is a recipe for instability," Hong Kong's financial secretary donald tsang told Singapore's Straits Times newspaper here during his visit for the east asia economic summit. He said despite some countries' possible reservations, such a system may have to revolve around the yen in the beginning. Proposing common currency with singapore to make a beginning, he said Hong Kong would be willing to give up its peg to the us dollar to join such a scheme. "We are thinking in terms of a horizon of five to seven years. Everyone will have to make a compromise somewhere. Singapore will have to give up its managed float," he said. He said considering the emerging global financial structure, it was time to put past prejudices aside as the world was clearly gravitating to a much larger Euroland on the one hand, and, nafta (north american free trade agreement), a us-dollar circuit joining all of the Americas, on the other.

To: Mark Bartlett who wrote (43622)	10/23/1999 9:38:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116759

Agreed. Neither Europe, Japan, nor China really want to have their economies tied to the fortunes of the US dollar. And it is also a clear sign that the political unity and economic policies of a nation go far towards determining the value of its currency. There is no reason that the Euro shouldn't be competing directly with the US. Europe has a greater population than the US, is a confederation of 11 different states and many other associated European States, and certainly has a measure of economic clout. All the elements are there, except the political unity, economic competitiveness, military capabilities, and the other element so very necessary to creating the psychological value of a particular currency. And flouting gold as a weapon against the dollar isn't going to change the underlying problems with the European economy. They are still primarily export based, statist/socialist and relatively non-competitive, especially against Asian companies. And where as the US is relatively flexible enough to alter it economy, I believe most sincerely doubt Europe's ability to adapt to current technology and business changes. And I believe weakening the US dollar is only temporary. Fundamentally, the dollar is stronger because our economy is stronger. Using gold as a weapon won't alter that strength. In fact, it may make it greater as we're able to export more undercutting our foreign competition (so long as they avoid protectionism). And agreed... it is easier to see this from the outside looking in. But it isn't difficult to project our analysis to the outside and understand and angles and agendas that seemingly are being pursued by others. Regards, Ron