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

To: energyplay who wrote (25997)	12/11/2002 3:32:47 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

As most commodities at the international markets are priced in the US dollar, devaluation of the US dollar may lead to price changes of many commodities, exerting a global impact. As the cut lowers the reward of putting money in the US banks, it may reduce the flow of capital into the US. It may also lead to outflow of capital from the US. For Asian countries that have suffered from capital speculation during the Asian crisis, a warning signal is raised for financial attacks by international flowing capital. <<The HK dollar maybe?>> On the other hand, as the United States major trade partners, a weakening US economy and weakening US dollars will certainly affect the income of Asian exporters to the US. (SD-Agencies)

To: energyplay who wrote (25997)	12/11/2002 4:20:37 AM
From: TobagoJack	Respond to of 74559

Hello energyplay, <<U.S. Dollar overvalued by 30%>> Regardless of CB's implicit observation that strong/weak dollar makes no difference to wealth preservation to the masses, I am still a USD cash, bonds and equity holder and am of course concerned about the exchange rates of USD to alternative currencies. Similarly, as a substantial Euro, Swiss Franc, Australian Dollar, Canadian Dollar, and Japanese Yen holder, I am proportionally concerned about their exchange rates. I also hold a bunch of HKDollars that is pegged to USD, and they are for trading paper gold, which is also a currency. I am concerned about the exchange rate of both currencies. I guess that gradually but surely, investor electorates, US and Rest-of-World alike, would tilt their portfolio allocation to guard against inflation, of the type engineered by a central-planning inclined FED, but then running out of control. My guess is inspired by what Bernanke said, I paraphrase, 'do not be my creditor because I am thinking about how to cheat you'. The alternative currencies do not seem substantially better, and so gold is better looking every passing day, until paper yields improve to dramatic level. Chugs, Jay