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

To: pogbull who wrote (38714)	9/23/2003 2:28:54 PM
From: Seeker of Truth	Read Replies (2) \| Respond to of 74559

I didn't see any agreement to let the dollar fall in value. Just some vague words to the effect that there ought not be any attempts to hold major currencies at a fixed value with respect to the others. But will the European central bank start to sell dollars and buy Euros? Not very likely. Will China start to sell dollars and buy something else? They haven't said so, in fact the Chinese government appears to take the opposite view, that renminbi should remain at the same price in dollars. So who will act and how much will they do. Japan? What's changed? Do Toyota and Sony etc. not care about the exchange rate any more? Of course the market place does not only consist of central banks, and the little people, including me were busy doing what ever they could, such as buy gold, buy non-US currencies with their US Dollars, sell puts on gold mining shares, etc. etc. Meanwhile I note that gasoline prices in Canada have dropped to a level not seen in months; if the same is true in the U.S. then there is even less pressure on the U.S. dollar. I suspect the fiction, that the US government can pay back on its ten year bonds a currency which will be anywhere close to the present dollar in purchasing power, will last a little longer.