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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (21488)	7/20/2002 9:15:52 PM
From: Snowshoe	Read Replies (1) \| Respond to of 74559

Jay, competition is good. The Euro is good. Other parts of the world should organize their own regional economic zones and currencies. I've been out shopping in AZ with my Mom today. Still plenty of consumption going on here. Whew, those stores and roads were clogged!

To: TobagoJack who wrote (21488)	7/20/2002 9:57:31 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

Jay, Japan is a bit like me. Getting old and crusty. Done their life's work. Resting on the oars and looking for a good place to plonk their savings. You are right that they need to move their production to China, but they can do that, like me, via shareholdings in USA companies or joint ventures with them. That way, they get USA military protection, and pay tax for that service via their companies like QUALCOMM. Then, they can happily rest easy and everyone else can worry that Japan's production and economy is sinking. That's happening to NZ too, but investors in QUALCOMM don't care. Japanese might not care too much either. I suppose that as Japan ages and population dwindles, their economic output will gradually reduce to a fraction of the peak. But that's not a worry if their investments cover their needs. I would NOT like my output to go back to my old level of energy. Counting the returns is strenuous enough for me. Mqurice PS: Going out now, so will have to skip the weekend barbecue you had planned for me. The midweek pot-roast will have to do.

To: TobagoJack who wrote (21488)	7/21/2002 1:11:52 PM
From: John Madarasz	Respond to of 74559

boomspeed.com Best, jm

To: TobagoJack who wrote (21488)	7/21/2002 6:37:04 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Jay, Message 17770802 , and as you were posting ... <<The big picture is that the small country China probably intends to lighten up reserve allocation of USD, from current>> ... it has started biz.scmp.com Monday, July 22, 2002 Beijing boosts euro holdings as dollar slides MARK O'NEILL in Beijing In response to the depreciating US dollar, China has reduced the proportion of greenbacks in its foreign exchange reserves in favour of euros. However, the dollar still accounts for about 60 per cent of reserves. At the end of last month, foreign exchange reserves stood at US$242.76 billion, up a year on year 34.2 per cent and an increase of US$30.6 billion in six months. Yesterday, the 21st Century Business Herald reported Beijing this year raised the proportion of euros to 20 per cent from 15 per cent at the end of last year. About 10 per cent of reserves is held in yen and the rest in Swiss francs and British pounds. In April, the reserves rose by a value of US$6 billion but the share of US dollars fell by US$2.1 billion as Beijing switched to other currencies. The newspaper quoted a report from the Bank of International Settlements (BIS) as saying that, between 1999 and last year, China had bought more than US$80 billion worth of US dollar instruments - US$23.3 billion in Treasury bonds, US$8 billion company bonds and US$53.1 billion institutional bonds. The reserves are handled by a management company under the State Administration of Foreign Exchange Reserves, with a small portion entrusted to foreign managers, as a way of helping to learn international methods of managing capital and controlling risk. A year ago, in a speech at Qinghua University, Premier Zhu Rongji said China's foreign reserves earned between US$6 billion and US$7 billion in interest each year. In recent years, the amount of foreign exchange in the hands of companies and individuals has soared. According to the BIS report, at the end of last year, mainland individuals held foreign exchange worth US$81.6 billion, up nearly nine-fold from the level at the end of 1992, while companies held US$45.3 billion, up from US$26.7 billion at the end of 1993. Many individuals, especially the heads of private companies, are uncertain about the stability of the yuan and prefer to keep their money in foreign currency. About 80 per cent of these individual reserves are in US dollars. The report did not say whether the national figure for reserves included those held by individuals and companies. Mainland reserves, the world's second-largest after Japan, have been boosted by China's favourable balance of payments, mainly its soaring trade surplus, analysts say. Rising forex reserves are a pillar for the stability of the yuan, which is convertible only on the current account. Analysts say full convertibility is at least five years away. China repeatedly says it will keep its currency stable. [EDIT: Code phrase for 'Stable against the USDollar']