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To: smolejv@gmx.net who wrote (18564)	4/30/2002 8:50:19 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi DJ, thunking right along with you: (a) I want to abandon my line of defense CHF (as in diving, I sometimes preposition scuba tanks along planned route of long dive and do not rise to surface - safer if the equipment with me goes bad, and saves time if not; or as in war, multiple and in depth defensive position) soon (@ 1.59?); (b) I do not actually know where to run from the foxhole of CHF, to EUR (but I already have large EUR position/foxhole), AUD (ditto, but smaller existing foxhole) or paper gold/gold shares (need to wait for retracement), USD (yuck, very disconcerting), or JYen (gag me with a spoon, even more disconcerting); and (c) I will decide when I decide, as usual - nowhere apparent to run, and I know Maurice will offer up QCOM currency in a moment. Anecdotes about Shanghai: (a) Went again on Saturday to the neighborhood of XinTianDi, the trendy city block of restaurants, bars, cafes, clubs, and renovated 1930s apartments, full of dressed up locals seemingly from 1930s movies, spending what I no longer feel like spending. The women, including waitresses, were all beautiful; (b) My nephew was wearing a stainless steel Frank Muller watch with characteristic large face and digits. I asked to inspect it closely. Moon phase dial, chronometer functions, leather strap, deployment clasp, mechanical movement. Checks out. I had long ago joked with friends about re-labelling a grand complication Swiss watch by filing off original markings and etching 'Made in China' on it and display at a trade show. Well, I joke no more. I was astounded. The watch was perfect except for the minor imperfections on one of four small rivets on the case back. USD 200. Patek Philippe, Lange & Sohne models supposedly also available. Unlike the fake Rolex of the past, sold in Thailand and Hong Kong, which were Quartz watches, the Chinese made fakes are, as the originals, all mechanical. I placed orders with nephew for two of each Lange, Patek, and Frank Muller. Chugs, Jay

To: smolejv@gmx.net who wrote (18564)	4/30/2002 9:48:59 AM
From: Ilaine	Read Replies (1) \| Respond to of 74559

Thought you might be interested in this visual explanation I made yesterday for my money and banking class. mason.gmu.edu The concepts are not new. Bob Mundell (Nobel Prize, Economics, 1998) came up with this way of stating things in 1963, in his doctoral dissertation for MIT, but they were known before then. This particular way of stating them has become more popular recently after the US and Europe took such diverging paths after the breakdown of Bretton Woods, especially as monetary authorities in developing countries have had to decide which exchange rate regime to adopt. Europe has a fixed exchange rate within the EU. The dollar floats. Hong Kong and Argentina, among others, tried hard pegs to another currency but we saw what happened to that idea. You know better than I do what Europeans have had to do to achieve convergence. China, apparently, chose the third way, although I don't know how that is faring lately. Edit: whoops, I see a typo under "Free Float." Should be "full autonomy."