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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (6448)	1/14/2002 4:23:40 PM
From: Paul Shread	Read Replies (1) \| Respond to of 36161

Someone really painted the tape on EPEX at the close. Traded down around 5-5.15 for most of the day, and then 200 shares went through at 5.32 at the close.

To: isopatch who wrote (6448)	1/14/2002 6:23:49 PM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

Iso -- I'm finally getting around to some of my reading and stumbled this little gem from Bonner. It fits in well with some of the stuff we've been talking about here on this thread. Although he does have a neat way of simplifying things I’d only agree to a certain extent. My own opinion on Canuck dollar weakness as a lot to do with the size and scope of our bureaucracy -- not unlike the size Argentinas bureaucracy... Regards Frank P. Bill Gross runs the largest bond fund in the world, with $48 billion in assets. "The dollar may not explode," he writes, "but it has got a leak with an almost indistinguishable hiss that should grow louder as 2002 winds on," he wrote. All over the world, currencies are leaking air... mostly against the dollar. The South African rand...the Argentine peso...the Japanese yen...currencies are deflating everywhere you look. Canada moved to a floating exchange rate policy back in '70. It floated higher against the dollar until April '74, when it hit $1.04. But it's been sinking ever since, and sank to 62 U.S. cents on Christmas Eve, 2001. Why are all these currencies falling? Because the countries need weaker money in order to remain competitive. How can the U.S. keep a strong dollar while everyone else cuts the value of his currency to undersell U.S. firms? It can't. U.S. manufacturing is suffering. Detroit has lost 8% of world market share since the beginning of the boom in America. And since the bust began, U.S. manufacturing firms have experienced a longer period of consecutive monthly declines than any time since the Great Depression. The dollar has to come down too. But wait. It has to have something to come down against. How can the dollar fall when other currencies are falling too? Ahh...this is where it gets interesting. Nations will compete - as is happening in Asia now - to see who can ruin the value of his own currency fastest. And all paper currencies will fall against non-paper currency, gold. Bill Bonner