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

To: The IB Dude who wrote (24331)	2/25/2005 12:15:51 AM
From: Chip McVickar	Respond to of 116555

Hello The IB Dude, Since the advent of floating currencies the major governments and their respective central banks have essentially "Agreed to Agree" on the value of ones currency. Over that period the US has been a dominant economic force, and our currency has been the measure. During this brief period the value of any one currency has needed adjustment to effectively manage the international balance of payments. We've seen it time and time again. Mexico was a superb example, and Argentina is a poor example. These adjustments, I think we could agree on, cannot be made independently, without the full cooperation of the central banks as a prerequisite. So I believe we are witnessing a managed three year decline in the dollar to accommodate these monetary adjustments. Perhaps the likely reason is to help Japan grow out of it's own deflation... or help establish the EURO... or keep the US from entering a deflationary spiral...? So in the end looking for "any real meaty propositions" isn't the answer.