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To: TobagoJack who wrote (44894)	1/17/2004 9:36:17 PM
From: elmatador	Respond to of 74559

SNAPSHOT-G7 positions on dollar ahead of Florida meeting Reuters, 01.16.04, 6:04 AM ET LONDON, Jan 16 (Reuters) - Finance ministers and central bankers from the Group of Seven (G7) most developed economies are scheduled to meet in Florida on February 6 and 7 as concern grows about the steep fall of the U.S. dollar.. * Issing said the ECB is concerned about the euro's recent high volatility but added the euro was not to blame for Germany's weak economy last year, and said its strength might offset inflationary pressures this year. * The Belgian central bank said a further rise of the euro against the dollar could jeopardise Europe's economic recovery but so far improved global demand had compensated for the currency's recent rise. * Deputy finance ministers from the G7 countries are due to meet in Brussels on January 26 to work on the agenda for the ministers' meeting in February, G7 sources said. * Japanese Finance Minister Sadakazu Tanigaki said U.S. deficits needed fixing in order to bring foreign exchange rates back into line with economic fundamentals. He declined to comment on suspected Japanese currency intervention. * A Finance Ministry source told Reuters Japan remains determined to take appropriate action against excessive foreign exchange rate moves that diverge from economic fundamentals. * Japan's top financial diplomat, Zembei Mizoguchi, said he saw no change in the U.S. strong dollar policy. But Japanese Trade and Industry Minister Shoichi Nakagawa said he thought U.S. authorities did not really want a strong dollar. * Dutch Finance Minister Gerrit Zalm said the strength of the euro was not necessarily negative. * ECB council member Nicholas Garganas said the dollar's fall had so far been relatively orderly, but large balance of payments imbalances globally remained a source of worry. * Bank of Portugal Governor Vitor Constancio said a more gradual change in the euro's exchange rate was desirable. KEY QUOTES OF TODAY "We are not indifferent about the foreign exchange rate but worried over the large volatility," ECB Chief Economist Otmar Issing said. ---- "An additional appreciation of the euro is also considered as a risk to the consolidation of the recovery," the Belgian central bank said. "The appreciation of the euro is of course weighing on the competitive position of the sectors which face competition outside Europe, but up until now the effect of that on exports seems largely compensated by the revival of worldwide demand." ---- "The yen's rise is divergent from economic fundamentals, given the continued relative strength of the U.S. economy versus Japan's," a Japanese Finance Ministry source told Reuters. "There is no change in our policy to take appropriate measures against such rapid moves." ---- "The U.S. economic recovery is firm but the dollar is weakening for other reasons," Japanese Finance Minister Sadakazu Tanigaki said. "The markets are reacting to the twin deficits and terror risks. In order to get currencies to reflect economic fundamentals, the U.S. deficits need fixing." ---- "The U.S. stance of a strong dollar policy has not changed," Japan's top financial diplomat Zembei Mizoguchi said. ---- "Personally, I don't think the U.S. necessarily wants the dollar to strengthen," Japanese Trade and Industry Minister Shoichi Nakagawa said. ---- "(Euro strength) is not good for exports but favourable to consumer spending. It will not break the neck of the economic recovery. I see no reason to hoist the storm flag for the strong euro," Dutch Finance Minister Gerrit Zalm said. ---- "The significant fall in the dollar to date, which in time will contribute in containing the U.S. external deficit, has occurred relatively smoothly, without large turbulence in the markets," ECB council member Nicholas Garganas said. ---- "It is desirable that there should be a more gradual development" in the exchange rate, Bank of Portugal Governor Vitor Constancio said. Following is a snapshot of developments and key facts: LATEST NEWS * Dollar hits three-year then recovers some losses on suspected Bank of Japan intervention. Euro extends losses vs greenback and falls one percent vs yen after European Central Bank Chief Economist Otmar Issing warns on euro's rapid rise

To: TobagoJack who wrote (44894)	1/18/2004 4:18:42 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Jay, while gold has been popular for thousands of years, there has been plenty of volatility in the price. People paying $800 an ounce 20 years ago have not had a fun time. QCOM with a 60 P:E would still be a better deal than that. 3000 gold watches and the other South Seas wild wealth effect spending they mentioned was trivial compared with the fantasmagoria of extravagance which accompanied the irrational exuberance of the Y2K Biotelecosmictechdot.com mania. People bought the gold watches when they felt wealthy. When they are feeling not so wealthy, they are NOT buying gold. The cost of production is about half the current price. Mqurice

To: TobagoJack who wrote (44894)	1/19/2004 1:21:21 AM
From: elmatador	Respond to of 74559

Sell oil for gold, Mahathir says Monday, January 19, 2004 Posted: 0024 GMT ( 8:24 AM HKT) edition.cnn.com JEDDAH, Saudi Arabia (Reuters) -- Former Malaysian Prime Minister Mahathir Mohamad has told Saudi Arabians they should sell oil for gold, not U.S. dollars, to avoid being "short-changed" by a decline in the U.S. currency. "The price of oil is $33, but the U.S. dollar has declined by 40 percent against the euro so you're effectively getting $20," Mahathir told an economic conference in Saudi Arabia's Red Sea city of Jeddah on Sunday. "So you're being short-changed." Saudi Arabia, the world's biggest oil exporter, has justified higher world oil prices by saying they are necessary to compensate for the slide in the U.S. currency. Mahathir, who retired last October, spent much of his time in office upsetting Western governments and defying their economic orthodoxies. But he became a respected spokesman in Islamic and developing states and received an ovation in Jeddah. He suggested countries tally their total annual imports and exports and settle the difference at the end of the year in "gold dinars." Sounding a discordant note, Mahathir also warned Saudi Arabia against rushing to join the World Trade Organization (WTO), saying it was not necessarily a positive move. Saudi Trade Minister Hashem Yamani said on Saturday his country had narrowed differences with the United States that were holding up accession to the organization and said he wanted to join "tomorrow." "Everybody should be careful before joining the WTO because it is not all positive. It can be very negative if you don't handle it properly," Mahathir said. "They try to impose their agenda without regard for some other countries." Copyright 2004 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.