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

To: sea_urchin who wrote (22580)	3/10/2005 8:58:15 AM
From: sea_urchin	Read Replies (1) \| Respond to of 81030

> USD looking very weak Excellent article on the subject. mises.org >>...the fundamental geo-strategic trends call for a reduced global role of the dollar. While the temporary interests of the major global players are directed at maintaining dollar stability and thus avoiding a rapid demise of the dollar's role as a global currency, these desires are not congruent with the longer-term aspirations of the foreign players themselves. The international monetary system has entered a stage when it becomes more difficult to manage a conflict that is getting out of control the longer it lasts. Inexorably, the constellation moves to a point where the potential loss will outweigh perceived benefits—not only for the holders of U.S. dollar reserves, but also for the United States itself. Under such conditions, economic and financial decisions in the private sector are prone to be made under false premises. One must not forget that three of the most essential prices in the modern monetary economy are politically determined or manipulated prices: the oil price, interest rates, and the exchange rates. Taking away the interventions, the price that the U.S. pays for imported oil, and the price for money and credit should already be much higher than they currently are. At their present levels, they reflect a position of the U.S. dollar in the global system that can hardly be maintained. Given the importance of these three prices for the economy and their potential direction, it is not difficult to assess the prospect for asset prices, particularly those of stocks, bonds, and real estate which all must come down when the fall of the dollar continues.<<

To: sea_urchin who wrote (22580)	3/10/2005 11:30:33 AM
From: philv	Read Replies (1) \| Respond to of 81030

US dollar problems is an ongoing story. I don't pretend to know where and how it will all end, but todays problems may stem from recent statements, now from the BOJ. news.ft.com But nothing has really changed in the economic front, except for much speculation that China has topped out and faces imminent rapid decline, Oil has topped out, Europe is in trouble, Commodities will collapse, and the only safe haven is the U.S. Actually, nothing really has changed. Oh, Japan too is in terminal decline while the US has a demographic advantage. yahoo.reuters.com The latest political push should be good for business. Privatize profits, monetize all debt.