Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: sea_urchin who wrote (22831)	4/6/2005 3:40:14 PM
From: Alex	Read Replies (1) \| Respond to of 81023

Asian dlr reserves could trigger crisis-World Bank Wed Apr 6, 2005 02:58 PM ET (Adds quotes) PARIS, April 6 (Reuters) - Accumulation of dollar reserves by some Asian countries could spark a systemic foreign exchange crisis, the chief economist of the World Bank said in an interview to be published on Thursday. Francois Bourguignon told the Les Echos newspaper it was too early to talk of a speculative bubble but that the United States had to cut its deficits to head off a crisis. The paper released the text of the interview ahead of publication. "For the moment I would not speak of a speculative bubble but of the danger of a systemic crisis linked to the accumulation of foreign exchange reserves," Bourguignon told the paper. "Some countries, particularly Asian ones, have no interest in the parities of major currencies being modified. As a result, they are financing the enormous American current account deficit. "Today, the danger is that some dealers are starting to think they must change the rules of the game, play dollar depreciation and move towards the yen and the euro. That would confront us with a real systemic risk." Cutting the U.S. deficit was key, Bourguignon said. The World Bank foresaw an orderly adjustment with the United States announcing a progressive reduction in its budget deficit accompanied by interest rate rises. "Too drastic a programme would plunge the United States into recession," he said. Recent pronouncements by Alan Greenspan, chairman of the U.S. Federal Reserve, suggested things were changing, he said, but "we are at the mercy of the nervousness of market dealers. "Today, no catastrophe is anticipated in the coming six to nine months. So I am not yet totally pessimistic," Bourguignon added. © Reuters 2005. All Rights Reserved.

To: sea_urchin who wrote (22831)	4/7/2005 3:16:36 AM
From: GUSTAVE JAEGER	Respond to of 81023

Re: Seems you forgot about Nigerian oil... ...And don't forget that, in Africa, conservative leaders regard homosexuals as vermin. The fate of Israel and the Iranian threat are much, much more important to US and Israeli hawks than West African oil and the gay issue... Besides, whether the next Pope is African or not won't change the fact that West Africa's oil supplies to the US will ratchet up.