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

To: SOROS who wrote (19711)	5/30/2003 11:08:39 AM
From: stockman_scott	Read Replies (2) \| Respond to of 89467

Buy a good Nasdaq stock and sleep on it...;-) We are seeing some powerful moves in some of 'the tech stocks' that everyone thought we should avoid. Last time I checked the Naz was up about 20% year to date...That's not too bad BUT we could see some consolidation. I remain cautiously optimistic. -s2 btw, its amazing how well the market is doing IN SPITE OF THE POOR LEADERSHIP we have in Washington.

To: SOROS who wrote (19711)	5/30/2003 4:46:59 PM
From: Jim Willie CB	Respond to of 89467

Fed Printing Press been busy, check MZM money supply chart research.stlouisfed.org brings back memories of the Weimar Republic a run on wheelbarrows is coming / jim

To: SOROS who wrote (19711)	5/30/2003 4:49:24 PM
From: Jim Willie CB	Respond to of 89467

G8: Dysfunctional Currency Family, by Jes Black (FOREX News) <<a falling dollar only serves to spread deflationary pressures around the world>> [me: falling dollar means falling Asian bank reserve values, which is the crux behind their upcoming deflation] The heads of state from the US, Japan and Germany spoke out today about their respective currencies indicating that FX concerns may be a theme at this weekend s G8 meeting in France. While not likely to overshadow topics such as post-Iraq reconstruction, AIDS and the Middle East road map, President Bush and European leaders will be compelled to discuss their weakening economies. And when the topic turns to the economy, the dollar should receive the most attention. Therefore, it was interesting to hear today s discontent between world leaders, which the falling dollar has exposed. Japanese PM Koizumi said he supports a real strong dollar policy and is opposed to a rising yen. Germany's Schroeder singled out the euro's sharp rise as hurting his country s struggling economy. with record low interest rates in the US and the dollar in free fall, it is becoming increasingly difficult for foreigners to justify holding dollar assets. Yet, while foreign investors have reallocated assets from dollars to euros, Japan remains one of the largest buyers of US government debt. Therefore, it would only make sense that it supports a strong dollar, just as are Eurozone countries. But Japan likely feels obligated to talk about intervention after today's release of BoJ data that showed yen selling intervention in May hit a monthly record high of 3.98 trillion yen, or $33.7 billion dollars. That makes up one half of the record issuance of US Treasury debt this month. In many ways this month stands out as a testament to the dysfunctional nature of the global economy as the Japanese inflated their money supply to buy US assets in order to maintain the USD/JPY pair above the 115 mark this year. This level is considered significant by Japan's exporters, which are under competitive pressures from China, whose currency is linked to the US dollar. Japan's attempt to maintain a competitive advantage exposes the difficulties posed by a falling dollar as it relates to Asian exporters and the rest of the world. Since Asian central banks hold approximately $1.5 trillion in US dollar reserve assets, they have a vested interest in seeing that the dollar preserving remains strong in both an absolute sense as well as relative to their own currencies. Nonetheless, because the Chinese yuan is fixed to the dollar at an undervalued rate, a falling dollar only serves to spread deflationary pressures around the world. And since this makes it more difficult to achieve an effective global rebalancing, other currencies, such as the euro, may have to appreciate even more against the dollar. Due to Asia s opposition to a falling dollar, the dollar's decline will not occur in a vacuum. Instead, each country's attempt to weaken each currency against the dollar will only bring deflationary headwinds to the very economies hoping to avoid deflation. -- May 30th forexnews.com