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

To: Michael Sphar who wrote (516)	8/31/1998 4:57:00 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 3536

Mike, From now on, FOMC meetings will be irrelevant... We all knew for long that Alan Greenspan wasn't such a hawk as far as a stringent interest rate policy is concerned. So what's the deal? Greenspan will lower the long-term interest rate on Sept. 29 because of the looming global recession... Could it trigger a massive rush out of the greenback to... huh? to which currency? The yen? But MIT professor Paul Krugman is suggesting Japan should enforce negative real (ie inflation-discounted) interest rates! That means that saving your money in a Japanese bank should cost you some 0.1-0.2% a year!! Will people rush to the Deutschemark? Hey! Europe can't afford a monetarist policy with over 60 million people surviving under the poverty line! And I think that the first trip of the newly elected German Chancellor (whether Kohl or Schroeder) will be to Moscow. It's the kind of trip you must have your checkbook with you... How many millions of DEM Chernomyrdin's gonna ask Germany this time? 100? 250? A billion? You tell me. Gustave.