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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (36035)	7/13/2003 9:07:09 PM
From: energyplay	Read Replies (2) \| Respond to of 74559

Hi elmat- Different version of article - By tying their currencies to the USDollar, Asia economies are enjoying increased trade while putting presure on the Eurozone. Low cost components from Chinese and Indonesian factories are combined with specialized high value parts from Japan, Korea, and Taiwan to create sophisticated low cost products which are sold all over the world. The linkage of all the currencies involeved eliminates currency risk from components until the large markets in North America. The reulting large trade surpluses are recycled into the US Dollar, mainly as US government debt issues, to hold down the Asian currenices relative to the dollar. The use of trade surpluses results in massive benefits for the United States, stimulating spending on consumer goods and helping reduce the cost to finance US military activity to insure a steady supply of oil for growing Asian economies. Europeans are locked out of this on several levels. They don't have the military capability to intervene in the Persian Gulf area. Widepsread unemployment due to strong unions and structual issues limits the increasing conusmption of imported consumer goods. Structual problems and failure of leadership (Wim Duesingberg) to reduce rates quickly has lead the heart of Europe (also known as Weasel-land) into a recesion while creating booms in peripehral countries like Ireland and Spain Asian countries should stop making money by subsidizing the US, and play by European rules by letting their currencies rise to a level where they are less competitve in the world market.