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

To: sea_urchin who wrote (22743)	3/24/2005 10:45:52 PM
From: philv	Read Replies (1) \| Respond to of 81101

The amazing dollar continues to amaze me and defy fundamentals. It was my belief that a high dollar was not desired by those in charge, but a high dollar is the inevitable consequence of higher interest rates, especially if the rest of the world sits on their hands. Perhaps a new cry to the world will soon be heard from the U.S. "Raise the interest rates." Wouldn't that be a switch! It cannot help employment, trade balance or any business requiring credit. And can cause default and bankruptcies for the heavily indebted, which is just about everybody. This article says it better, and I can't find fault with its logic. gold-eagle.com "In the final analysis, higher interest rates, especially when they result from inflation rather than growth, will likely be the straw that breaks the back of the over-leveraged American economy. As the world's largest debtor nation struggles to make higher interest payments on its massive external liabilities, those holding its IOU's will finally come to their senses. Realizing that the burden will ultimate proof too great, they will attempt to sell. Unfortunately, this realization will likely come too late, as few will be willing to take the other side of the trade."