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To: Terry Swift who wrote (12389)	5/30/1998 2:13:00 AM
From: teevee	Respond to of 116895

Hi, A point for consideration by all "fat cat" north americans. Many people in the rest of the world, when times are good, buy gold specifically for times like these. Believe it or not, (for those of you who do not travel or stay on top of current affairs), many people are selling what gold they have so they can buy something to eat. Last I heard, gold is not very nourishing and very difficult to digest.

To: Terry Swift who wrote (12389)	5/30/1998 2:41:00 AM
From: Alex	Read Replies (3) \| Respond to of 116895

Hi Terry\Tom. My thoughts on Asia and deflation being imported to the west. Your conclusions seem logical if it were not for the fact that we are political animals. The present trend is not sustainable IMO. It matters little to western consumers that prices are dropping if their wages will be forced down at a faster clip in order to compete. We are in a downward spiral that is accelerating, feeding on itself. The political cost of a yen at 200 would become obvious to everyone. Greenspan constantly refers to the ability of the fed to print 'unlimited' $'s. I believe this will be the only way out of this mess. Otherwise the trade deficit will go to the moon, and no country can sustain that forever. The following quote from 'The Future of Capitalism' by Lester Thurow goes to the heart of this dilemma IMO. Re: the trade deficit.................. "Those who said that it could not go on forever have shut up. Like weeds, theories have sprung up as to why the United States is unique - as the worlds reserve currency it only borrows in dollars so there is no danger of default, everyone in the world wants an unlimited number of American assets in their portfolios since they are planning to forever stay in dollars and don't care what happens to their wealth evaluated in their home currencies, no one cares whether they loose money on their American investments, etc. But none of the arguments reverse the fundamental truth. They are all nonsense. At some point the United States will lose its ability to finance its trade deficit." "The longer the current situation continues, the larger the eventual structural adjustments that will have to be made."