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

To: The Wharf who wrote (22066)	12/2/2004 12:39:42 PM
From: philv	Respond to of 80957

Hi Darleen, I too think eventually the Asian currencies, specifically the Yen and the Yuan will have to rise in US dollar terms. It would go a long way to solving Europe's problem, making their high cost products more affordable there, and perhaps replacing whatever export business is lost in the U.S. But no matter how it is sliced, the net result is a dropping in the US standard of living. Today's US exuberant standard of living is being financed by tomorrow's expectation of pay back, but the accumulated debt, still growing, which when they come to maturity, are increasingly becoming more difficult and costly to roll over.

To: The Wharf who wrote (22066)	12/2/2004 6:30:09 PM
From: The Wharf	Respond to of 80957

There are two major world currencies the US $ and the Euro. The US dollar as you would say has utterly nothing to do with how we live here we make more dollars to cover higher costs> People demand wage raises to meet costs. Our wages are increasing but there's a question of job growth. If we view the value of a dollar as indicative of an economy then we determine if holdings those dollars will create value for us. If a nations well being is in question interest rates rise on treasures and bonds to make holding them more attractive to investors. One cannot look at this a US people going bust for there are always valleys and hills in each economic structure. An increase in demand spawns segmented internal inflation and decrease of demand lowers it. However with the advent of China entering the world trade market the labor rate was so much less that it made it very conducive for companies to grow in China. The result of course is that China has to stem off inflation which she has no intent of doing as she keeps the peg. In Germany as well as other areas of Europe costs are high so corporate growth moves to where they can trim costs. The drop of the dollar here signifies the market does not feel that the US dollar has a great deal of future potential so the Euro is sought after as it appears to be a more stable currency unit. The problem is the economies that compose the Euro are not all doing that well either. The tide that stems at present is world inflation, . The C dollar buys less from China and charges more for products she sells to China. Canada's cost increase to produce and growth as well as job market starts to slow. China is doing very well both economically as well as politically. However she is being flooded with too much currency. At some point her export growth figures will start to level off however her internal structure will have heated up significantly. Inflation of base costs don't disappear jobs do. The end result to me is all currencies will be affected long range as each nation is feeling more inflationary pressure created by increased currency value.. To me this means there will be a crisis that stems from currency and this causes an over valuation of gold. . I cannot give you a time table but I am so sure it is more possible than not. If I think of politics Bush is outspoken he in my opinion is not a diplomat which makes the possibility even greater.