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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: chic_hearne who wrote (125166)10/2/2000 10:51:32 PM
From: tejek  Read Replies (1) | Respond to of 1578133
 
It could be one of many events. I don't see the Naz returning to form, eventually if this stays true I believe the dollar will weaken. Supply and demand I guess.

chic,

The Naz's performance, I would think, has an very indirect relationship to the dollar, and the issue of supply and demand???.......I don't know how you relate that economic principle to the collapse of the dollar. But I do think the Naz would have to crash and stay crashed for several years and the country would have to be in serious recession/depression for the dollar to collapse.

The reason I say that is because the collapse of the dollar would indicate that the dollar has little or no value. The scenario would be much like that that occurred during the Weimar Republic where the deutsche mark became incredibly devalued because of the incredible retributions required of the gov't. That alone did not do the trick but it led to an inflationary devaluation......in an effort to make the retributions, the gov't began printing $$$ as if it were candy. It was a desperate move. At times, the price of bread might almost double during the time it took for one to travel to the store. Inflation became rampant....and eventually the deutsche mark collapsed.

Obviously I have greatly abbreviated the above event but what scenario, similar to the one above, do you envision that would lead us to the collapse of the dollar? Or do you mean something else when you talk of the dollar's collapse?

ted