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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (27488)	10/12/2000 1:44:09 PM
From: chic_hearne	Read Replies (3) \| Respond to of 436258

Very good peice from yesterday's rap if anyone missed it: You always hurt the one you love. . . Even as I have chronicled the abuse of the euro, I have cautioned that the dollar would have a problem some day after the stock bubble burst. Colin Negrych made some observations this morning on this subject that I agree with: The U.S. has $65.5 billion in reserves to defend the dollar. This is a pittance relative to the value of U.S. assets held by foreigners, both securities and business interests. When the dollar starts to fall against the euro, as it has been doing for years against the yen, the "dollar crisis" mentality will take hold. The U.S. macroeconomic imbalances make a 25- to 40-percent adjustment in the dollar the most likely outcome. This event will be resisted in every way possible, but the efforts will fail. The U.S. has sucked in massive amounts of foreign capital with captivating tales of high returns and low risk bolstered by high growth and low inflation, all made possible by a surge in productivity resulting from the application of technology. There is now plenty of evidence the foregoing is a fatal fiction.