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

To: sea_urchin who wrote (19669)	11/22/2003 9:54:00 PM
From: philv	Read Replies (2) \| Respond to of 81145

Searle that chart about gold/rand is amazing. No wonder the price of the S.A. gold shares are badly lagging, while their real costs are increasing together with all the political considerations. This can't go on forever, because at some point, some of these mines have to curtail or shut down. On another subject, you must be clairvoyant, because this Fed. Reserve governor is saying what you earlier said, but the difference is, this guy is serious and believes it. I copied this from another thread. “The general public is also concerned about the large and increasing U.S. trade deficit. Some of the concern reflects a view that U.S. exports should equal U.S. imports. This view fails to appreciate that a country’s trade balance and its capital account are very closely related… Via basic accounting, a country’s capital account surplus is equal to its current account deficit. For simplicity, let’s view the current account deficit as the trade deficit. A common mistake is to treat international capital flows as though they are passively responding to what is happening in the trade account. In fact, investors abroad buy U.S. assets not for the purpose of financing the U.S. trade deficit but because they believe these assets are sound investments, promising a good combination of safety and return. On a personal level, every one here has the option of moving funds abroad, for example through mutual funds that invest in foreign stocks and bonds. Why is the net capital flow into rather than out of the United States? The reason is that for most investors the United States is the capital market of choice. There is no better place in the world to invest. In sum, the United States has created for itself a comparative advantage in capital markets, and we should not be surprised that investors all over the world come to buy the product. As investors exploit the opportunities provided by U.S. financial markets, trade deficits can arise. Thus, my view is that our current trade deficits are not a cause for alarm because on the whole they reflect extremely positive forces driving the U.S. capital account.” prudentbear.com Beaufitully said. We will give you paper dollars, you give us the goods. Good deal.....for America that is. Wish I could do that, just produce a piece of paper, put some numbers on it, declare that it is official "tender" (whatever that means), and trade it for something real. It's a con game.