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

To: Jamey who wrote (18506)	6/5/2003 1:01:33 PM
From: Ahda	Read Replies (2) \| Respond to of 82354

Searle perhaps feels if the US dollar falls to far there is a very huge possibility for the whole of the worlds financial system to fall with it. So a round table and closed doors would attempt of avert this crisis meaning it can't happen.. That means more US dollar flow. When you look at the extent of use as well as debt tied to the US it boggles the mind. The US was able to promote other areas of the world as the US standard of living was high and included a surplus of dollars. Problem has been creeping up over the last several years. As the middle of the economy contracts in size, poverty and wealth both increase. Both sides need dollars where the middle was more or less content as they worked for and had a more secure income than either wealth or poverty does. The system attempts to protect those with less dollars and many with less dollars learn how to get the most advantage from our laws that will increase there own cash flow. On the other hand extensive wealth tries to obtain that advantage too, in both cases the law is used and dollars of debt are increased. The middle income sustained both. The middle can pretty well be thought of people who worked for but as the labor pool grew to world competition they could no longer be complacent in their actions. I feel this has aided the increase in the deficit of gov budget. The middle was less aggressive yet capable and it is my belief they lived with more respect of laws that governed the nation. The demise of their security in pension plans has changed their very being so using laws for self advantages is now the thought process of the all of our people. Anderson has come up with a slow economy forecast projected into 2004 for CA. They have also advised to think twice about moving up property wise. They don't see growth in employment but a status quo type thing here. You can't have status quo in jobs and a continual increase in the cost of housing something has to give. Expansion is minimal at best here in Ca. The US is the IMF and the UN in the case of IMF prime dollar provider and the UN appears to be a overpaid group with utterly no clout. You have to have some one with courage enough to question this dollars future value. It ludicrous to think Germany is in better shape than we are as our laws are the equivalent in cost to their social system both systems are high cost to the depleted middle to maintain. Then the answer really is unless someone gets burnt severely due to this dollar of ours the mess and US flow continue on. The other spade in this deck although it might be small is you can't be a warrior but must be a diplomat. I view this global economy as a mega merger of business going on around the globe. Currency however to me is the mega problem due to fluctuation and the cost of this to business. Currency aids growth but if your dollar looses half it's value your debt has doubled to those you owe. What applies to the interior can have an entirely different result on the exterior. If you hedged the Yen and the dollar both end up going the same way where is the hedge? You use the Euro than you have decreased the Euro own internal labor markets potential due to higher costs to their export products. If you don't create jobs then you find imports will decrease as those without jobs spend less. Huge are the problems as the world adjusts to this global economy. Then avoid a currency mess well this could be addressed with spin offs and incorporate in other areas. The initial investment in higher poverty areas has led to internal growth and new demand. This could be one doozer of a problem for the US labor market as well as other mature markets who have more costly labor and systems they must support. It will self correct but the correction could include several miserable messes along the way.