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

To: philv who wrote (19007)	9/15/2003 8:37:17 AM
From: sea_urchin	Respond to of 81145

Phil, I think, maybe, your response was intended for me or Gary. James was a late entry. > Therefore, the only alternative is a devaluation of the almighty buck, accomplishing the same thing and more as it tends to monetize all debt through ensuing inflation. I agree that devaluation is an alternative but not necessarily the only option. How about default. If the US can't pay it simply doesn't. It simply rolls over the debt or wipes it out completely like the African nations did. > Asian and European countries will try to prop up the dollar for their own reasons, but when they finally throw in the towel, watch out below Increasingly, as the economic activity and economic power move more and more to the East, the West will become less and less important, except to itself, naturally. At the moment, however, it definitely does suit the world to have a strong dollar. In fact, non-US countries will lose both their investments and their exports if the dollar falls while the US benefits by having cheap imports, a ready market for its investment paper and low inflation. And, of course, national pride and prestige. IMO, the apparent crisis we are witnessing is the result of the US realizing that it may well have reached its zenith of economic power and it doesn't like what it sees. Hence the militarism and the bluster, all self-defeating, of course, and, indeed, adding to the predicament.