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

To: RealMuLan who wrote (29072)	5/1/2005 1:20:37 PM
From: Earlie	Read Replies (2) \| Respond to of 116555

Real: Sooner or later, the Asians are going to lower the boom. At this end, I foresee: - the establishment of an Asian-based currency (perhaps the Dinar), which will be significantly backed by gold. - the demise of the greenback as a global "reserve currency" with the new Asian currency replacing it after an appropriate period of time (neither the Euro nor the Yen would be acceptable). - a further, (MUCH greater than anticipated by most) fall in the value of the buck (due to printing press inflation, and a growing aversion (i.e., heavy selling of) Treasury toilet paper. If the Asians hope to avoid a selling panic, the early stages of a new currency adoption will take place slowly, providing time for them to "off-load" their current mountain of US debt paper (albeit at a considerable "discount" to face value). Hard to believe that they will continue to (or can afford to) accept payment for their goods with highly questionable IOUs. Best, Earlie