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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (29496)	4/26/2000 7:19:00 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 42523

Sounds like a good strategy. I'm personally placing precious metals bets along the same lines. My leading candidate for economic "rod-thrower" is a currency crisis. In Mr.Moto's column (see link a few posts earlier), he referred to a speech by Paul Volker in Thailand a few months ago: "In the world of money - in the true architecture of the international financial system -something more surprising is taking place. Directly contrary to the widely accepted textbook models, more and more smaller countries - particularly in Latin America and Eastern Europe - have questioned the value of an independent currency. A number have already taken the major step of abandoning their own currency altogether, or approximating that approach by linking the local currency to a major international currency by means of a currency board. In effect, those countries are saying that they are willing to forego the financial autonomy and flexibility afforded - at least conceptually - by a national currency. What they expect to get in return is the stability and integrity - and the relatively lower interest rates - inherent in use of an internationally strong currency, the dollar or the Euro. I trust they are not misled in their thinking; use of an international currency cannot prevent speculative excesses and a banking or financial crisis in response to misguided policies. Budgetary discipline and effective control of costs will be essential. Circumstances can easily be envisaged - the text books are replete with them - in which the loss of monetary flexibility will be regretted." Wise worders from the man who saved America's bacon in 1980-1982.