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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (13670)	10/19/2004 2:29:28 PM
From: ild	Read Replies (1) \| Respond to of 116555

Date: Tue Oct 19 2004 14:08 trotsky (RIP) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved some will undoubtedly buy gold as insurance, but why would they NOT repatriate dollars into their home currencies such as the euro or the yen? they need not even do that directly - it would suffice if financial institutions and other corporations were to begin to increasingly hedge their dollar exposure with derivatives - that would prompt ouright dollar selling by the counterparties to those hedges. don't forget, the dollar needs almost $2bn. per day in inflows just to tread water. Date: Tue Oct 19 2004 13:52 trotsky (RIP@dollars) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved there may be a domestic shortage of dollars when that happens, but you're forgetting the huge net long position foreign investors hold in the dollar. and it is those foreign dollar holders that will determine the dollar's exchange rate. we're talking about a $5.20 trillion overhang here. i don't think that foreign dollar claim holders will idly sit by when the US domestic debt mountain crumbles. they will sell, and ask questions later. Date: Tue Oct 19 2004 13:36 trotsky (Sherlock) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "They're drunk from drinking from the cup of big government. And in their drunken stupor, they think that more government is the answer to their problems. They are going to suffer one hell of a hangover." well said. of course, that's what the PATRIOT act and similar legislation is ultimately for ( has anyone ever wondered how several 100ds of pages of repressive legislation were cobbled together in less time it takes to read it? obviously it was already waiting in a drawer somewhere, for the opportunity which 9-11 has provided ) . i doubt many terrorists will be caught on account of it, but it certainly will come in handy to handle future domestic unrest in case the rubes are forcibly awakened by a major economic accident