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

To: lurqer who wrote (12405)	1/31/2003 4:22:33 PM
From: Jim Willie CB	Read Replies (4) \| Respond to of 89467

Bonner and interesting comments about dollar-bonds The government can "produce as many U.S. dollars as it wishes [at] essentially no cost," said Ben Bernanke. What Bernanke meant to say was that the he and other Fed governors could control the supply of dollars. He failed to mention what they could not control - the demand for them. Was it not obvious that demand would go down - eventually - since supplies have gone up for so long? And then, we curse ourselves because we forgot to get out of the dollar when the getting was good. Now, it's not quite as good - because demand for dollars has already dropped sharply since Bernanke let the cat out of the bag. But at least we, as Americans, still keep score in dollars ...we pay our taxes, tuition and medical insurance in dollars. Think of the poor foreigners who hold somewhere between $3.7 trillion and $9 trillion (we know the gap is cosmic...we have seen both numbers reported and have not yet been able to reconcile them) in U.S. dollar assets. While we fret and regret...these poor saps must sweat and lose sleep. Imagine the hedge fund manager with a billion in U.S. dollars. He's lost $100 million or so - on the exchange rate alone - in the last year. Every day, another few million evaporate. How long will he stand for it? "The real collapse of the dollar is coming soon," says Dr. Kurt Richebacher.