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

To: mcg404 who wrote (18035)	4/17/2003 7:35:11 PM
From: sea_urchin	Read Replies (2) \| Respond to of 81015

John, OK, now I see what you are getting at. Finally, the penny drops! You are considering the devaluation of the USD against whatever currency and then the consequent rise in the gold price because, by convention, it is measured in USD. This is not a novel approach --- the devaluation of the dollar is always implicit in a rise in the gold price. It seems, however, that you are presupposing a large devaluation eg 30-50% but that is a different consideration because of all the implications and consequences which arise from that happening. Indeed, the profound devaluation of the USD has been proposed as a cure for the debt trap and the deflation in which the US now finds itself but the consequences will be that the US, in order to survive, will have to be an exporting nation for both goods and capital, as it once was. In my mind, this is virtually impossible not only in the foreseeable future but probably forever. It would mean that the US would have to compete with China, in fact the whole Asian block, and not only that, it would have to sell them goods made in the US . As I see it, the US is trapped in the situation of high labor costs and low production and, frankly, I cannot envisage any way that labor costs in the US can fall below those of China --- unless Americans are prepared to work for slave wages, but then what's the point of the exercise?! To me, at any rate, it is perfectly clear that the US has positioned itself vis-a-vis the world economy for a "one-way-street". By this I mean the US dominates the world into producing goods and products cheaply. It then buys what it pleases with printed money which the "lucky" seller can then invest in US "paper". The inflow of "foreign" money into the US maintains the value of the USD. Clearly, the US has every intention to live off the labor of all the other nations who, in time, will be reduced to the level of serfs or lackeys, similar to the old colonial days of Britain, Spain etc. On this occasion, until the Iraqi war, it was being done more subtly (talk of "globalism" etc) but now it's perfectly clear that the US intends to enslave the world, if necessary by force --- in fact, I would say it's no longer a matter of choice, its avarice and artificially high living standards (definitely in relation to its own production) demand it. Therefore, if you are anticipating a serious fall in the value of the USD I would say you are presupposing a doomsday scenario.