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

To: Bill Grant who wrote (14835)	7/18/2002 2:53:58 PM
From: sea_urchin	Read Replies (3) \| Respond to of 82352

Hi Bill and thanks for the question. While I am someone who can accept that many things in this world are not what they seem and also that many financial instruments are manipulated, I cannot believe, simply because, at this moment, the Euro finds itself at parity with the USD, that it's as result of a chat between whoever or a manipulation. Perhaps, one day, after the two currencies have traded over many years in a narrow range then it might be considered advantageous to link them but definitely not now. Clearly, "crazytimes" hasn't been following either the gold or the currency markets closely because, if he had been, he would know that the last thing the US wanted was to devalue the USD. While the dollar was strong America was having a "free ride". Foreigners worked to produce goods which America bought on credit which, in turn, the foreigners lent. Furthermore, the last thing Euroland wants is to link its tenuous currency to that of America or to have it stronger than necessary. Indeed, it suited both Europe and Japan, as much as the US, to keep the USD strong and the local currency weak. In fact, both Europe and Japan acted like a pair of whores and the US like their client. Certainly, there was or is no basis for partnership or "marriage" between them. And, of course, lurking in the background is the biggest whore of them all -- China. In fact, it's only a matter of time before China produces enough goods for the whole world and at a price against which no-one can compete. Anyway, there's deep concern because recent game had to stop. Why did it stop? Because someone popped the investment balloon and everyone left the party in panic. Perhaps one might say that the cops raided the whorehouse but, as we now know, the cops were amongst the worst offenders! In fact, all Greenspan's talk and Dubya's talk and Ari Fleisher's talk and whoever else's talk couldn't stop the panic. The show's not yet over not by any means. In fact, it may only have just started. People are still running around like headless chickens. Indeed, no-one knows now what the ultimate levels of the currencies or the price of gold will be . The US is broke and survived only because no-one can or will call in the chips. Furthermore, neither Europe nor Japan have robust economies and, now, if the US can't or won't buy their goods, then they are going to be in trouble too. It's because of all the uncertainty that there's an enormous flight from stocks to bonds or property. Gold is attractive to certain people but not universally so. The problem with gold is that, for whatever reason, it has lost its investment status. Maybe, with all the uncertainty, that will return. Time will tell. That it does, is what we are betting on. To use another metaphor, "When people are leaving a sinking ship, they will cling to anything that floats --- even the toilet seat --- or what's beneath it!"