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To: benwood who wrote (232149)	3/29/2003 2:15:43 PM
From: Gersh Avery	Respond to of 436258

You would short the dollar first .. Then unload the notes.

To: benwood who wrote (232149)	3/29/2003 2:44:39 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 436258

Ben, I believe our treasurer did not blunder when he recently said the US would let the markets adjust the price of the US dollar. The dollar plunged and he then came out and said he believed in a strong dollar which in my opinion was a signal to the traders he got what he wanted from his market statement. I also believe the traders are not going to take the short term risk of treasury intervention. If a foreign owner wants to quickly dump large amounts of US treasuries they can cover their risk of the asset that would be affected by the trade. I am not an expert on the process of selling large amounts of Treasuries. <g> I would suspect the foreign seller does not want to hold US dollars if they are making the sale and would have a plan of exit from the US dollar. They could convert the US dollars to anything they felt was stable. They could buy a currency of choice and/or gold, silver, platinum, palladium, pork bellies, etc. <g> Your conjecture of what happens if a stampede occurs would be interesting to watch. <g>

To: benwood who wrote (232149)	3/29/2003 6:57:27 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 436258

Ben, It is obviously not to the advantage of Japan and Mexico, or our poodle dog friend, Britain, to repatriate all of their dollars and destroy the currency. Mexico is planning a large sale, $50 billion, but that's manageable. I doubt North Korea has much in the way of dollars. The big worry is China. At some point they will demolish the US economy to assert global superiority. it is probably far off in the future. But they have no reason to keep us afloat longer term.