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To: energyplay who wrote (65042)	6/14/2005 11:19:17 PM
From: Maurice Winn	Respond to of 74559

<that doesn't mean that conspiracies of various types don't exist.> That's for sure. Conspiracies exist everywhere there is more than one person. Within the first two sentences, there is usually a conspiracy under construction, albeit just some preliminary attempts to find common interests, and within the next few sentences, a search for mechanisms to increase the success of those common interests. Conspiracies are great fun and the main thing that people do. Mqurice

To: energyplay who wrote (65042)	6/15/2005 2:32:42 AM
From: elmatador	Respond to of 74559

How capital is spreading more evenly: Emerging market countries are about to become net creditors in the global financial system for the first time since the asset class was created, data from Fitch Ratings show. Fitch says the central banks of China, India, Russia, Brazil, South Korea and Malaysia added among them another $100bn (£55.5bn) of reserves in the first quarter of this year. Oil revenues lift debtor nations' fortunes By Päivi Munter Published: June 14 2005 19:54 \| Last updated: June 14 2005 19:54 Emerging market countries are about to become net creditors in the global financial system for the first time since the asset class was created, data from Fitch Ratings show. The outstanding external debt of the countries many of them big oil and commodity exporters will be smaller than their current external receipts. The credit milestone, expected by next year, coincides with a record current account deficit in the US, the world's richest country. Fitch says the central banks of China, India, Russia, Brazil, South Korea and Malaysia added among them another $100bn (£55.5bn) of reserves in the first quarter of this year. The term “emerging markets” was coined in the 1980s to describe countries in economic transition, many of which had high debts and heavily dependent on external borrowing. Philip Poole, head of emerging market research at HSBC, said: “The wealth transfer that has been fuelled particularly by high oil prices has never been seen before. “Emerging market countries have had to pay a premium for their borrowing, but now the improving debt fundamentals are fuelling a credit convergence with the developed economies. “The distinction between a developed and emerging market is being blurred.” Emerging market yield spreads over US Treasury bonds have fallen to below 4 percentage points this year. Ingrid Iversen, director at Insight Investment, the asset management group, said the improvement in emerging market fundamentals and a fall in sovereign debt issuance had been a boon for bondholders, who had seen the prices of their paper climb as yields have fallen. The improvement in emerging market creditworthiness has been rewarded with a flood of ratings upgrades. Many of the countries are rated investment grade, and Fitch has a positive outlook on 13 of them compared with just three on negative outlooks. However, some countries, such as Brazil, Turkey and Hungary, remain highly dependent on borrowing from foreign investors. David Riley, managing director at Fitch, said the role reversal that had seen poorer countries fund record deficits in some of the world's biggest economies could have unpredictable consequences when the imbalances start to unwind. He said: “This could fuel a sharp depreciation of the US dollar, which would stoke inflation and force a rise in interest rates. If this happened, global risk appetite would fall and highly indebted emerging market borrowers would see their borrowing costs rise sharply.”