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

To: Gary H who wrote (16579)	12/17/2002 3:22:56 PM
From: sea_urchin	Respond to of 81310

Gary >if they keep struggling for the lower currency nobody will win That's the problem. Usually it's like a see-saw or relay race where the tired one can pass the effort to the counterbalancing partner or the baton to the next runner. However, Germany, Europe's largest economy, is nearly in recession and Japan is being swallowed in a whirlpool of financial crap, seemingly never to come out. So, as I see it, there's no one for the US to pass the baton to. Thus, the US is effectively being hoist on its petard of the "permanently" strong dollar. Now, as before, the US has to buy everyone's exports, especially China's, and service everyone's investments --- only this time, with a dysfunctional economy and a tidal wave of debt which, conceivably, can never be repaid. Frankly, it's my opinion that unless the US can devalue the dollar and increase domestic inflation, the possibility of deflation and serious financial trouble is very likely. And even with devaluation, inflation does not offer a simple escape from financial hardship. I agree with you about big yeller. However, that can only provide a lifebelt for a few and hardly for the global economy. I suppose that makes gold even more attractive.