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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (31)	5/4/1998 9:41:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

Z, I agree, we live in very interesting times. There is a lot in your post and much I agree with. As with my previous response I will just try and go down your post and make a few comments in the order of you post. Language is only part of the issue. Culture counts as well. Yes the US is a nation of immigrants but they were coming to a culture with the intention of integrating. They had the spirit to go to a foreign land to make their fortune. The hard core unemployed in Europe have always had the option of emigrating to seek work. The unification of the currencies will not make that any more likely. I agree that an entrepeneurial spirit will be key to the success of the Euro. This is not however a natural instinct for some of the participants. I do believe the Euro will succeed. It is just that likely to have an 'interesting' journey. For the life of me I can not figure out Pat Buchannan. I lost a lot of respect for him when he became a virulent protectionist. For the record I am a registered Republican but I have strong Libertarian connections and oppose an activist government. You bring up a very good point with NAFTA and Mexico. I strongly agree that the best way to effect positive change is through open markets not lecturing. This is why I strongly favor ending the trade embargo on Cuba. I do believe that we are in a period of tremendous democratization of the international economic environment. The free flow of information and free flow of capital acts as a very effective policeman. The market punishes bad policy swiftly. It is important to recognize that part of the impeteus behind the Euro has been a desire to build a currency that will be large enough to protect them from the market. This will fail. The Euro will be subject to policing by the market as well. I don't pretend to know where the future of the system will evolve. I have heard the speculation of cyber cash etc and the prospect of currencies disconnected from nation states. All this may happen but there will be downsides to such a system. There is a reason US treasuries are considered risk free returns. Interesting times indeed. I personally am betting on the continued empowerment of individuals. Henry