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

To: Henry Volquardsen who wrote (491)	8/28/1998 12:40:00 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 3536

To all currency watchers. What happened to all the pundit's predictions that the turmoil in Russia would cause a flight to the US dollar? The dollar has been quite weak the last two days despite the turmoil in world financial markets. Has the weight of the US trade deficit finally become so great as to swamp the investment flows? Where do you see the US dollar going and why? -Robert

To: Henry Volquardsen who wrote (491)	8/28/1998 1:17:00 PM
From: Bill Ounce	Read Replies (1) \| Respond to of 3536

What's my source? >>>What is your source for that info? Many luxury items are imports and unlikely to have come down in price considering the currency collapse.<<< Imports of luxury goods drop to zero because of a flood of used luxury goods swamps the market. Highly leveraged (formerly) wealthy people dump their luxury goods to pay their margin calls. At the same time currency collapse causes imported food and fuel skyrocket pushing up the prices of even locally grown produce. So luxury goods and realestate deflates while base consumer goods hyperflate. My source is that I've recently visited and keep in touch with people from that region. But, you don't have to take my word on it :-) this sort of info is regularly published online in the South China Morning Post (http://www.scmp.com/news/asia/topasia.idc)