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

To: sea_urchin who wrote (22453)	2/27/2005 6:53:31 PM
From: Jamey	Read Replies (1) \| Respond to of 81108

"Dollar Crisis Evokes Panic Among World Financial Elite" Comments by Volker, Rubin, and Bergsten. "Most alarmist was Bergsten, who addressed the danger facing the United States in the form of its huge trade and current account deficit. "The U.S. must now import $5 billion in foreign capital a day merely to finance the current accounts deficit," Bergsten said. In the face of this, according to the London Financial Times, he forecast a sharp sell-off of the dollar coming "within weeks," and a full-blown dollar crisis." larouchepub.com James

To: sea_urchin who wrote (22453)	2/28/2005 11:32:23 AM
From: philv	Read Replies (1) \| Respond to of 81108

Interesting dilemma not just for the US, but the world it seems. If the dollar cannot go down in value for all the stated reasons, what does that say about trade deficits and the transfer of manufacturing jobs to Asia? If nothing is allowed to change, I guess we just go on in the same direction, and fundamentally, this should be good for gold, as debt and deficits just keep on growing. And of course the higher these debts go, and assets built on debt, the greater the danger when they finally fall. Argentina last week officially declared it would not pay its debt, offering instead about 30 cents on the 100 billion dollar debt. That seems like an easy way out, but what if the US were to declare bankruptcy? There is always an expectation that debt will someday be repaid. However, debt repayment is a future event, and as they keep pushing the date ahead, the happy party goes on in full swing. But in the other room, the real money and power brokers are grinning as they make another entry in the ledger. But they must start to wonder and worry if there are any more Argentinas out there. I expect gold to keep strengthening until something breaks.