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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (8765)	11/10/1997 7:56:00 AM
From: ed	Respond to of 97611

Mr. NW : The stability of currency is a relative idea,for example: the recent depreciation of Korean WON relative to the dollar can be explained either way, i.e either Won depreciated against dollar or dollar appreciated against won. So we can say either won or dollar is unstable. Since dollar is used as a standard currency for international trading which is always fixed at "1" for reference against all currency, to say it in another word, relatively dollar is the most stable currency from the world point of view. Previously, US is a large market which can absorbe products from most part of the world, so dollar is used so that US can imported unlimittedly without building up any foreign debt, and this propelled the worldwide prosperty. However Since Japan is a monster of exporting and US Corp also started to compete in the world market , which drained up the dollar reservation of some countries, as a result those countries either have to stop importing or making foreign debts to sustain the importing. If those countries choosed to stop importing, this will put the worldwide trading system in jeopardy.If those countries choose to make foreign debt to sustain importing, the debt of each of those countries will reach to a level they can't pay off. Those are what happened lately in those S. E. countries and Korea, those are countries have very high foreign debt. Since China have 1.4 billion population, which will be the world largest market on earth to absorbe the products from world industrialized nations whose industry have been over capacitied with too much productivity lift in the past ten years and find no place to absorbe the industrial output. However the current currency will limitted China to absorbe products from all over the world , eventhough the market is there. Because , China needs to export as much as possible in change for dollars to sustain its import.That is the reason why we need to use Chinese currency as the standard currency for international trading so that China can absorbe products from all over the world unlimittedly , which will sustain the world prosperty for at least another fifty years. Otherwise, the current problems will never be resolved , even we switch back to gold standard. We already start to see the dangerous signs caused by using dollar as trading currency from the recent S.E. Asia phenomina, The Tailand, Indonisia, Malasia's economy almost got melt down, and now is Korea, who knows what will be the next. All those are caused by trade unbalance and some countries will be drained up with their dollar reserve, while US can't absorbe products from all over the world anymore.If this trading system do not get fixed, we will see a melt down of the world economy. Of course, CPQ can not survive from this comming storm. as a currency standard