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To: Ramsey Su who wrote (6180)	7/4/1998 12:08:00 PM
From: Zeev Hed	Respond to of 10921

Ramsey, I would not worry about any of this green coming out "en masse" at once. First, over the next twenty years, I expect additional countries to go from time to time into the "less than stable" currency situation (it seems as if SA is joining the club rapidly), thus providing demand for those greens that will be ejected from countries where greater stability returns. Furthermore, even when stability returns, it is not perceived by all that rapidly, so the process of "dedollarization" if it happens, will be slow and quite absorbable within the required growth of our own money supply. Zeev

To: Ramsey Su who wrote (6180)	7/4/1998 9:31:00 PM
From: Jacob Snyder	Respond to of 10921

OT: Ramsey, I think you worry too much. Re: "The green back has been used as the currency by default. What if this trend stops ?" Under what circumstances could you see it stopping? The Euro may, in time, challenge the greenback as a reserve currency, but I can't think of any other contenders, even potentially. Other regional currencies of a decade ago (yen, ruble) have been dethroned. Everyone is selling gold. No, this trend (dollar replacing other regional and national currencies) will continue and intensify. The Global Village needs a global currency. It also needs a global policeman (U.S. marines under UN flag), global financial policeman (IMF, World Bank, U.S. Treasury), global language (English), and a global culture (look at your kids, whether you live in Alaska or Singapore or London). These things are happening, not because of any conspiracy or utopian vision. They are happening because, at each crisis, only global solutions and global institutions suffice. The world is coming to realize just how much waste and uncertainty are created by the current system of national currencies. A Japanese company finances a factory in Thailand, whose products are sold in the USA. But all their plans are dependant on the relative value of the currencies of those 3 countries, which they can't predict and can't control. All the arguments which led to the creation of the Euro apply equally well on a global scale, and will eventually prevail. In the meantime, those overseas dollars will stay where they are.