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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (1574)	9/21/2000 8:01:16 AM
From: LLCF	Respond to of 57684

<Will this financial drain tip the US into a hard landing? I don't think so because the US will be the last to suffer pain from this. The dollar is strong and all oil is traded in US dollars. The Europeans and Asians must all trade their currencies for dollars before they can buy oil. Countries with soft (and declining in the case of the EU)currencies relative to the dollar are taking the hit far more than the US, and if their currencies fail you can bet that US rates will be lowered quickly by the Fed, just like in 1998. > IMO opinion the leg missing here is where so the dollars end up.... ie. everyone bought oil in dollars, fine, but NOT from us [dollar originator], from OPEC. The final leg must be [under you're scenario] that OPEC use them to buy U.S. Goods or just continue to sit on them as a researve currency [as much of the world has been doing with the explosion in our money supply]... otherwise you've got dollars floating around unaccounted for. <if their currencies fail you can bet that US rates will be lowered quickly by the Fed, just like in 1998. > Yep, that's the way the game works... print more coin to keep the carouselle going! DAK