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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: ubetcha who wrote (13461)	2/17/2002 3:14:43 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81502

Terry, my dog is AU, with some HGMCY and GOLD on the side. Since I am a witch-doctor by trade, my mind has not been cluttered and contaminated with all that old economics theory! In fact, what I have learned in the stockmarket and the world of finance is, whenever one thinks one understands the rules, they change them. So, it's better not to know any rules and just watch the play. There was a time when high interest rates meant a strong currency and this attracted foreign investment which was, presumably, looking for a higher rate of return. Today, we are now told that low interest rates means a strong economy because it's cheap to borrow. This will now attract foreign money which is looking for a long-term business or stockmarket investment. Furthermore, there is no such thing as inflation. The usual gauges of inflation (gold price, CRB etc) are so "rusty" that they couldn't move even if there was 100% inflation per year. What I see today is that money does not go to the country with the highest relative interest rate, it simply flows to the US, however strong or weak the US or the foreign economy is and quite indifferently to the interest rate differential. The game (originally invented by the Japanese and now mastered by the Chinese) is for foreigners to keep their currency cheap (against the USD) and let the US keep buying their produce. Then, the foreigners, in turn, keep their profits in US dollars and prop up the US stock market and bond market to levels which are unheard of in terms of historic investment practice. This makes Americans feel rich and happy (also the foreigners) and so the Americans borrow more and buy more foreign produce. And also more stocks. Since the borrowings (? 6 trillion US now) will never be repaid, the game can continue forever. So, as far as I am concerned, what Alan is doing is simply cosmetic. The game (globalism) is being played all around him and despite him. He is simply and symbolically keeping the score by making big speeches and micro-messing with the interest rates. Of course, everyone is made to believe that he is controlling the game, like a conductor in front of an orchestra. This is an illusion.