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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (33789)	6/3/2005 12:27:37 PM
From: ild	Read Replies (2) \| Respond to of 110194

Global: Another Conundrum Stephen Roach (New York) China: Fear Not Protectionism Andy Xie (Hong Kong) morganstanley.com

To: orkrious who wrote (33789)	6/3/2005 12:41:55 PM
From: ild	Read Replies (3) \| Respond to of 110194

Date: Fri Jun 03 2005 12:31 trotsky (it's ridiculous beyond words......) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved all the euro-enemies are coming out of the woodwork, proclaiming the currency's imminent demise because voters rejected the cumbersome 'constitution'. the anti euro camp consists of 1. the US based neo-con smearers , who fear for the dollar's hegemony ( they are quite right to so fear ) and 2. European nationalists who have been against it from day one. neither has even a snowball's chance in hell of seeing their wet dreams come true. the Euro-based capital markets are by now so large, that breaking up the currency would likely cause an immediate global financial crisis. not a single European businessman wants to do without the euro - it has led to a mini-boom in intra-European trade and investment and has removed onerous calculation and hedging requirements that bedeviled European businesses previously ( and have cost 100ds of millions every year ) . it has FORCED EU member states to enact economic reform programmes that wouldn't have taken place without it. it has lowered the debt service costs of governments across the euro-area. if anyone seriously thinks that the fact that the constitution was rejected will lead to a repeal of the euro, DREAM ON - it won't happen. not only did the euro quite obviously not need the constitution before, it is actually better off without it. contrary to what the popular press reports, the fact that political cohesion has been delayed is in fact good for the currency. it ensures that members of the currency area will continue to monitor each others budget deficits with a watchful eye, while the ECB will remain THE most independent central bank on the planet. remember, it is not 'a country' or 'countries' that are the issuers of modern day fiat money - it is the central bank. the euro is in several respects far superior to the dollar ( and will therefore slowly but surely become an ever bigger part of central bank reserves world-wide ) . the most important aspect are the respective MANDATES of the Fed and the ECB. while the Fed is charged with , inter alia, 'maintaining economic growth and full employment' ( something a central bank simply CANNOT DO ) , the ECB's only mandate is to ensure the 'stability of the internal and external value of the currency' and NOTHING ELSE. while the US dollar emanates from the biggest debtor in the history of the world, whose debt is growing by leaps and bounds EVERY DAY, the euro-area has a trade surplus with the rest of the world and consequently a positive and growing net investment position - in short, it is a creditor to the world. thus the euro is at present without a doubt the superior currency, even though it is ultimately also fiat trash. but even fiat trash has qualitative differences. all the noise about the euro's allegedly uncertain future probably constitutes a contrarian buy signal at this point ( note also that speculators hold their largest net short position in euro futures ever ) . Date: Fri Jun 03 2005 12:07 trotsky (Gordon Brown) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "Britain, the current holder of the G7 presidency, has declared 2005 a make-or-break year for Africa.." what utter baloney. gold is one of Africa's major exports, selling the IMF's gold can only hurt the continent. but as we know that is NOT what motivates Brown anyway. he's a socialist, and opposed to gold on principle. gold stands for economic freedom, which in turn is diametrically opposed to the authoritarian doctrine of socialism and forced redistribution.