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

To: philv who wrote (22180)	12/15/2004 3:53:32 PM
From: philv	Read Replies (1) \| Respond to of 81003

Let me answer my own question. Other than hot air, the U.S. must live within its means. This means cut backs including the military. It means supporting a high interest rate. It means renouncing the future obligations under health and welfare. None of the above are without consequences, severe depressive consequences. When you take drugs away from an addict, things get pretty desperate. Even if you believe such a scenario is in the cards, the rest of the world would simply adjust and copy in an attempt to maintain their relative advantage. There really isn't any magic. Other than the printing press and interest rates, what other tools are there if a nation will not live within its means? Hot air can lift a balloon to unbelievable heights, but eventually it must cool and come down to earth.

To: philv who wrote (22180)	12/15/2004 3:54:10 PM
From: philv	Respond to of 81003

double post - edited out.

To: philv who wrote (22180)	12/15/2004 5:24:42 PM
From: sea_urchin	Respond to of 81003

Phil > A strong dollar will make the US more competitive, and therefore will reduce their trade deficit The fatter on gets the higher one can jump. > will also result in increased economic activity at home which will decrease the current account deficit. The more one eats the thinner one gets. > But how does one order a stronger dollar in the first place? At Macdonalds, of course, with a Coke and fries.

To: philv who wrote (22180)	12/15/2004 5:52:06 PM
From: The Wharf	Read Replies (2) \| Respond to of 81003

From: Julius Wong 12/15/2004 7:48:00 AM of 2059 Deutsche Bank points out that in 2001 there were 76 million ``prosperous consumers' (defined as people who don't have to spend the bulk of their income on food and housing) in China. By 2015, that total may grow to 700 million, while the U.S. will only have 284 million, and Japan 112 million, it said. quote.bloomberg.com A strong dollar will not help tbe US on world front. It will increase buying power for imports as well as increase outside less costly labor. We are seeing inflation especially in medical costs so we are not going to see prices drop. AG must and will continue to raise rates. At the same time if we do not have inflation and have any type of contraction the budget deficit hasn't a hope of being reduced. Again you have the a tango between the most unlikely partners US and China. US $ strength will aid Chinas in her aim to curb inflation. China has to be careful she does not tighten up too much or she will be stagnant. Hedging has increased substanially. I still think there could be one large currency problem. The potential for a collision is truly there and that forces gold to shine. Now as I am totally the odd ball in the litter and beginning to look like Sinclaire I shall shut my mouth.