Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (36)	5/18/2003 1:42:56 PM
From: Ahda	Respond to of 594

Would be one impossible mess if their was a gold standard. What it boils down to is you can't adjust currencies to act as the increased incentive to product purchase on the world market. The BOJ attempted to lower the Yen which meant they would reduce product price on the world market. That spurned the desire to hold US dollars so by decreasing Yen value the international companies in Japan found they faced increased world operational costs. Government bail-out for Japanese bank May 19 2003 By Shane Green Tokyo The Japanese Government will spend up to ¥2 trillion ($A26 billion) to rescue one of the country's biggest banks and prevent the financial system of the world's second-largest economy plunging into crisis. The Koizumi administration's decision effectively means that Resona Holdings - Japan's fifth biggest banking group - will be nationalised, although the Government intends to limit its role in managing the bank. The decision to commit the public money was triggered when the group's capital-to-assets ratio fell below the required 4 per cent to about 3 per cent. The situation was worse in the group's main banking arm, Resona Bank, where the ratio had fallen to about 2 per cent. The dire situation of the bank was caused by big losses on shareholdings and bad loans - two problems facing most of Japan's troubled banks. ");document.write("

To: Ahda who wrote (36)	5/20/2003 4:09:11 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 594

Re: What it boils down to is you can't adjust currencies to act as the increased incentive to product purchase on the world market. The BOJ attempted to lower the Yen which meant they would reduce product price on the world market. That spurned the desire to hold US dollars so by decreasing Yen value the international companies in Japan found they faced increased world operational costs. What it boils down to, imo, is that the Bilderberg cabal scrambles to kickstart the Transatlantic trade... Bilderberg schemers don't want a world that revolves around the Transpacific loop and, ultimately, around China... Hence their pincers ploy: the SARS psycho-terror trick against China and, simultaneously, the euro boost. Indeed, the SARS hysteria has conveniently choked the Chinese powerhouse (GDP growth trimmed by a full 1%) and the euro boost against the USD is but a financial trick to SIMULATE growth in Europe! In three months the euro rose by about 20% --from 0.96 USD to 1.17 USD. That means a 20% growth for US exporters in their European market(s) --as they convert their euros into dollars. At least, part of the 20% growth in the exchange rate will trickle down to consumer-oriented businesses: US-made computers, cars, software, garments,... are cheaper for European buyers. At the B-to-B level, it might not play out as favorably though since the rise of the euro hampers corporate Europe's competitiveness... Yet, the Bilderberg scheme assumes that an exchange-rate-triggered growth will induce a REAL trade growth between Europe and America and, subsequently, narrow the gap with the Transpacific trade. Gus