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To: Jeff Jordan who wrote (276476)	2/6/2004 7:45:32 AM
From: Jeff Jordan	Respond to of 436258

....no wonder? There's a full moon out there!

To: Jeff Jordan who wrote (276476)	2/6/2004 8:36:43 AM
From: Tom Smith	Respond to of 436258

<...get it?> I guess not, but then I'm kinda dense... We have globally structured deflation and an inverted pyramid of derivative-leveraged debt that has the US economy in handcuffs and leg-irons; we're being frog-hopped to bankruptcy and the only remedy proffered is controlled devaluation of the currency...to the consternation of large holders of US debt. I ask, devaluation to what level and over how long a period? An immediate USD index of 50 just might not do it. Without a break in the yuan peg, the Chinese advantage is egregious. Now if everything we'd buy came from China, I agree, prices might not significantly go up (but they will...2.5 billion new consumers chasing the good life will push up the ante and besides, the dangers of dependency on other countries for basic manufactured goods, I think, outweighs any savings here). China is relatively resource poor....and has become a net importer of commodities, particularly petroleum. Resource rich countries feeling a sucking effect from the East are not likely to want to accept our perpetually puny pastel paper in exchange....such countries might engage in independent thought and consider a better outcome to be to accept payment in their own currencies. What would happen if the Saudis wanted to be paid in gold dinars or the South Africans wanted rand for their steel? How about in 5 years when the Chinese are in high gear, break the peg and demand yuan? Looking at it from their point of view, why would they want to surrender control of their currencies and therefore their countries to the financial machinations of Western banksters? In that case, the banco-military complex wilts and the dollar become confetti.....now would that be re-flation or just-in-time-right-flation or inflation or hyperinflation? The rubin-summers strong dollar policy accelerated the transfer of wealth and security of this country overseas and it won't be coming back soon nor without, I fear, great pain......where's the outrage....oh yeah, it got transferred too.....