Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: frankw1900 who wrote (89242)	12/4/2004 3:16:31 AM
From: LindyBill	Respond to of 793983

As far as I can tell the world is unfolding as it should Yes, Asia has bought into the concept of "begger thy neighbor" merchantilism, and is now going to have to pay the price in a higher currency peg. The Euro is a puzzle. All I can figure is that they are being too tight with their money supply, and now are facing an enormous runup in the Euro, with all the consequences of that action. I agree with you that the Fed has not gunned the money supply too much, because we would have seen more inflation if they had. Part of this, of course, is the drain of our money supply to act as overseas currency. It sure takes the strain off of us. The only fly in the ointment that I see is the structural financial instablity of China. They have to take a "bust" somewhere along the line to get their banks shaped up.