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

To: studdog who wrote (41155)	11/8/2003 7:37:47 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Welcome to BBR Karl, <<resources>> My watch and brief: achamchen.com achamchen.com My implementation: achamchen.com <<beat Jim Rogers to press by one day>> ... that depends on what you mean by 'one day', as in on which planet of our solar system ;0) http://www.siliconinvestor.com/readmsg.aspx?msgid=16051585 <<July 10th, 2001 Devaluation can be part of the transition process. There can be many reasons for wanting a devaluation (industrial competitiveness, cheat the creditor), and there are many reasons to resist a devaluation (prevent runaway inflation, maintain attraction for capital). Which way the US goes depends on how out of alignment the US economy gets to compared to what is necessary to maintain a standard of living. The folks do want their politicians to help sustain a standard of living as much as possible, as painlessly as possible, and the policy tools are actually very limited in ingenuity. ... If the US wanted to devalue its currency, it can easily do so. Should the other nations not agree, they can in turn announce intents to competitively devalue, and the market will do their bidding as well. As you say, after much volatility, we then get back to the original starting point and start yet again. The problems comes when the politicians of each country, including the US, start to back up their words with action, namely a looser monetary policy, coupled with a still less disciplined fiscal policy, and to deliberately poison the money. In such event, all currencies aiming to be devalued will be devalued, but not so much against each other, but against monetary gold and against certain finite resources (oil, forests, mines, number of hours available in the labor pool). In such a case, we then presumably can have inflation in all participating countries, and economic stagnation in the same countries. Fun.>> Chugs, Jay