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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (1941)	2/6/1998 9:15:00 AM
From: Cynic 2005	Respond to of 9980

When the USDs emerge from the closets of housewives in every nook and corner of the world, there will be a big drop in the value of USD. That's what I have been wondering. I am sure that's what Greenspan means when he said (parapphrased) "continued strength in the US dollar is the key to strong demand for US Bonds." In other words, I think he is worried about the same scenario you have posed. The culprit is exchange rate which is so artificial because not many (especially currency traders) have the will to know the fair rate. At the end a day, the rate is a result of speculators and government defenders in small economies and pure speculation in others (e.g., US and Japan). I wish there existed a better medium of exchange. My thinking is in the same lines as yours. Though I think that the currency traders are the smartest of all who trade stocks / bonds / commodities, their actions do not necessarily represent the best solution to the problems. -Mohan

To: Rational who wrote (1941)	2/11/1998 4:54:00 PM
From: philv	Read Replies (1) \| Respond to of 9980

S. Acharya/Mohan: Re: US dollars in Foreign Countries: I am aware that much more paper dollars exists outside the U.S. than within, and much of world trade is conducted in $U.S. The question you posed about what might happen if these dollars are returned to the US is interesting. This is bound to happen to a certain degree when the EMU issues the Euro. What is curious to me is why the US has not put up roadblocks to the EMU and the proposed Asian equivalent. Looking forward, are these monetary blocks simply a step towards a common world currency? I would be interested in your views. Phil