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

To: sea_urchin who wrote (19031)	9/17/2003 6:22:22 PM
From: philv	Read Replies (2) \| Respond to of 81164

Hi Searle: I have often wondered about the extent of advantage given to the $US simply because it is the reserve currency of the world. It must be truly huge indeed. Firstly, dollars are held in accounts, private and government all over the world inorder to transact daily business. Secondly, central banks carry dollars to settle accounts and to back up their own currencies. The total must be in the trillions. Money for which the US has received goods, but which will never be redeemed or called back. And, when they decide to increase the money supply which should cause a devaluation of the currency, these same entities do their utmost to prop up the dollar, not wanting losses in FX. "According to recent Fed reports, foreign investors poured $101 billion into U.S. Treasury bonds during the second quarter." financialsense.com Maybe Greenspan is right, you don't really have to manufacture anything, as long as others are willing to accept your (overvalued) currency. An interesting situation which will go on until it stops.

To: sea_urchin who wrote (19031)	9/17/2003 6:48:39 PM
From: philv	Read Replies (1) \| Respond to of 81164

Grasso resigns. quote.bloomberg.com Less than a week ago I said he wouldn't last 2 months. I was obviously far to generous. But, he is only one case that received publicity. There are lots of Grossos out there. Everywhere.

To: sea_urchin who wrote (19031)	9/18/2003 11:58:28 PM
From: Jamey	Read Replies (1) \| Respond to of 81164

Searle, that makes sense. One point that you might want to comment on is the fact that the US has to make interest payments on those Treasury notes to the Third World countries who buy them. They also are losing big time because those same countries (like China) won't sell our goods and in other countries we are not competitive because of the price of our products. It seems the ship of state is top heavy and also taking on water. The only question is when does it flounder. All comments appreciated. James