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.

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

To: Ahda who wrote (18514)	6/5/2003 3:23:38 PM
From: sea_urchin	Read Replies (1) \| Respond to of 82363

Darleen > I suppose you could say you could buy more debt but who wants it if an economy starts to fail. Unfortunately, the economies are all set up today so that the thing which causes the failure, namely the excessive printing, debt and misallocation of resources, is all there is to offer as a remedy. > As you have already bought the debt at a far greater cost the original transaction is a loss to you Only against your own currency. In dollars it's still the same. The actual loss is only when default occurs. > The other minus is who needs it when it can be bought at a less costly rate if the US dollar continues to fall Yes, in fact, one of the main reasons that foreigners bought the debt was to keep the value of the USD high against their own currencies. In this way, they were assured of a one-way street for their exports. Now that the USD has fallen against their currencies it becomes clear that buying US debt can't support the USD and there is therefore no point in foreigners buying the debt. If this is, in fact, so then I have to say the situation is very serious for the US and James may well be right about the soup-kitchens. Only I don't want to think such a thought because it is too awful to contemplate. > Our unemployment figures are bound by a time limit so you could very well see a decrease in the figures but an increase in the downward spiral of a nation Maybe there is a solution which we just can't see.