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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (73014)	7/7/2001 1:37:27 PM
From: baystock	Read Replies (1) \| Respond to of 116753

Just like a cure for low oil prices was low oil prices, a cure for the high dollar is the high dollar. The high dollar is badly hurting U.S. manufacturing competiveness. Now that the new economy is getting obliterated with no turnaround in view for at least another year or so, at some point the realization will set in that the U.S. needs to restore a competitive manufacturing economy. Other countries in dire straits, such as Argentina, can resort to the quick fix of devaluation against the dollar. But what is the quick fix out of their mess for the country whose currency is the global reserve currency, if lowering interest rates doesn't work ? : >>Argentine stockmarkets closed on Thursday at their lowest since President de la Rua came to power in late 1999 as rumours circulated that the Economy Minister, Domingo Cavallo, might resign. While the Argentine government is desperately trying to pull its economy out of a prolonged crisis, Brazil - hit by its neighbour's problems, an acute energy shortage and a number of government corruption scandals - is hoping it can avoid all-out recession. The currency plight in Brazil weighs heavily on neighboring Argentine peso, which has been moored to the US dollar for years. Many local monetary experts are forcasting a draconian devaluation of the Argentine peso to help mitigate the 15% unemployment rate and recoup its export lost trade.