Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (1359)	7/3/2002 8:18:17 PM
From: t2	Read Replies (1) \| Respond to of 89467

EU Awaits U.S. Decision Before Deciding Whether to Escalate Steel Tariff Dispute Syl, That story you posted shows how much power EU now has. As individuals countries they would not have been able to make such threats of retaliation. The selection process for the tariffs is also very well thought out. This is also a factor on why Euro will gain on the dollar. Considering that about 75% of world's reserves are in dollars, can it really get stronger? I have posted this earlier but we know how all those Asian countries loaded up on dollars fearing some sort of currency crisis. What they did not see was the possibility of having to defend the dollar. <g> So we have a dollar bubble. I see it as the equivalent of maybe Nasdaq 3500 to 4000. Haim earlier posted that the Euro is fully valued but my point would be.. who cares about valuation when you are dealing with the possibility that we might see a flight out of dollars worldwide. Everybody has dollars (especially the worldwide central banks) and it keeps losing value. That is how you get a flight to safety into Euro/Yen/Gold etc.. George Soros saying how overvalued the dollar is combined with the decline we have seen is surely making a lot of central bankers very nervous. Remember how the Japan were able to defend their currency a few years ago...and took it from 140 Yen all the way to about 105 in a matter of a week or two. How come they have not been able to do the reverse lately even though they try their best to talk the YEN down. Everyone is loaded up on dollars and are afraid to buy more. I recall they were actually selling YEN and buying Euros instead of dollars...we know that is only 1/2 as effective as buying dollars. The intervention has been a failure IMHO. Last Friday the FED was helping to weaken the YEN at the request of the Japanese. That is total BS. They are more afraid of a sudden dollar plunge and don't really care about the YEN. IMHO, they were just pretending it was not really a dollar issue. The dollar is going to decline; the big question is how fast. A sharp drop is very bad but a slow controlled one might actually be good in the long run. I fear that a sharp drop is what we will get simply because we have just recently seen a big bubble burst (Nasdaq) that is fresh in everyone's minds. I fear too many will rush to the exits all at once and the FED/Europeans/Japanese will be powerless to do anything about it. jmho