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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (12171)	11/22/2004 11:16:48 AM
From: Return to Sender	Read Replies (2) \| Respond to of 25522

SNIP: Here's the problem with a falling dollar. As the value of our currency declines - due to too high budget and trade deficits, and too much printing press action - the appeal of holding U.S. dollar denominated assets by foreigners diminishes. The longer foreigners hold assets of a deteriorating currency, the lower the value of those assets. So, foreigners become disinterested in buying new U.S. assets and develop a growing disdain for depreciating U.S. stocks and bonds. The risk here is that foreigners start dumping our financial assets. The problem from their perspective is, once they dump our stocks and bonds, what do they do with the money? And that is a real issue which is why so far they haven't dumped. But if they can find an acceptable alternative investment, selling pressure could annihilate our stock and bond markets. This, in effect, is what Greenspan was saying this week - only in Maestro-talk. Just speculating, but world instability could strengthen the U.S. Dollar - for example a Middle East event - perhaps the catalyst to primary degree wave (2) up. In that case Gold may not act inversely. Just a thought. futures.fxstreet.com