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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (3516)	5/4/2002 6:58:32 AM
From: d:oug	Respond to of 39344

Merry, I'am not making an opinion about the article you posted, just did a short version cut & paste of the article ending. Guess we all just have to wait and see what happens to the US dollar in the near term weeks and months as i am sure behind the scenes are battles taken place to keep the US dollar strong while market forces include attacks on not only the US dollar, but probabily all fiat currencies. or, lots of house of cards on planet Earth, maybe one for each nation that has money printing presses. "A strong dollar has suited most of the world in recent years. Europe and Japan have, in effect, been able to export their deflationary pressures to the US... If the US dollar were to decline sharply, that would put severe pressure on European and Asian exporters... ... the US buys nearly a fifth of the world's exports. ... a falling dollar would add to inflationary pressures on the US economy... currency movements seem to be driven more by economic growth expectations than by yield support. ... to link these two big movements - the enthusiasm for real assets and the change in sentiment towards the US dollar? ... essentially three possibilities: a slide into deflation; a continuation of low inflation; and the return of inflation. ... September 11 and the collapse of Enron may have played a part in this mood change. ... the assumptions that the US is a political safe haven and the market with the highest accounting standards are open to question. The US, indeed, is the source of one of the biggest uncertainties in the minds of investors at the moment; whether the Bush administration will launch an attack on Iraq later in the year... Bulls of the dollar may still be saved by the lack of an attractive alternative currency - given the diminishing hopes for economic reform in Europe or the worsening fiscal problems of Japan. philip.coggan@ft.com Copyright: The Financial Times Limited 1995-2002 //globalarchive.ft.com/globalarchive/article.html?id=02...