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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (23042)	9/25/2007 2:08:30 PM
From: elmatador	Respond to of 220533

FED cut rates sparked speculation Saudi might revalue the riyal for the first time in 21 years. Hedge funds have set going a wave of speculation, buying the riyal through the foreign exchange forward market. More than $10bn was pumped into the riyal last week. Similar levels of speculative flows were seen in the three months before Kuwait de-pegged the dinar from the US dollar in May. A revaluation would erode the foreign assets of the government and citizens, much of which remained in dollars, said Mr Sfakianakis, who estimates that SAMA holds around $1,000bn in foreign exchange reserves and assets ft.com

To: RJA_ who wrote (23042)	9/25/2007 3:33:47 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 220533

True, scare commodities will go up. But there aren't any of them. If people want more of something, the price goes up, then people start producing more of it. With gold at $700 an ounce, you can be sure production has increased - though it hasn't increased in all currencies. In NZ$ for example, gold hasn't gone up much. So the Waihi gold mine is just ticking along making money, digging up gold and silver. But profits are up quite a lot. With oil at $80 a barrel instead of $20 a barrel, there is a LOT of profit in finding oil. So that's what people will do instead of less profitable activities. Or they'll create alternatives such as better insulation, living close to work, driving a bicycle instead of a tank, shopping on-line instead of roaring around freeways door to door in malls. Leave the delivery to the milk run delivery van. There aren't any scare resources. Increase the price of anything and production soon goes up. Mqurice