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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (88875)	1/26/2001 4:15:29 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

ild, It appears that currency traders are currently focusing on economic growth as the primary factor in currency values. Over the long haul though, I believe that high money growth relative to GDP and a large current account deficit will rule the day. IMO the USD is on the fast track to devaluation. The only thing that can prevent that is a competent central banker that puts the currency above the short term economic outlook. There's no such thing in the US these days. :-) Wayne

To: ild who wrote (88875)	1/26/2001 6:34:04 PM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

ild, The dollar is strong because our GDP, as reported, or, I should say, faked, is still stronger than most other country's. How to play a weaker dollar with leverage? Many ways, depending upon your risk level. In the futures area, short bonds or long T-Bond puts are a good, fairly conservative choice. Long calls on Swiss Francs, Euros or Yen would also work. Long gold futures might work. It has most of the time in past dollar debacles, but it has really not played a couple of times, too. In the stock market, buying something like The Europe Fund or Swiss Helvetia or Germany in the closed end fund arena, with margin if you want leverage, would probably work. In the bond markets, long German, Swiss or Euro denominated bonds are a low risk way to play, but they can be leveraged with margin out the wazoo.