Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Euro Impact on Gold, USD ... -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (30)	9/22/1998 10:40:00 PM
From: banco$	Read Replies (1) \| Respond to of 289

Papaya King, Macro statistics showing currency movement between euro debt instruments, US Treasuries and JP Gov't bonds are not yet available on my end, although the overall size of respective bond markets is already well known. I don't know if anyone can claim accurate numbers at this time, as they are a collection of private decisions within the marketplace. The important consideration is that all the above bond markets are massive. The reallocation of holdings to the prospective euro market is in progress and will accelerate considerably in the coming months. Private institutions have been taciturn about how much funds they are reallocating. Figures will be more visible once the institutions have taken care of their clients and start communicating details to the press and analysts. Even a few large firms coming forward with specific figures will provide enough basis to determine the collective shift in asset allocation. At this moment in time, only the professionals are aware of what reallocation is occurring. Specific institutions and governments have commented about future participation, foreign pension funds and insurance companies among them. These groups will participate immediately upon inception of the euro or shortly thereafter. The pre-season games, however, are definitely underway.

To: Broken_Clock who wrote (30)	10/11/1998 7:29:00 PM
From: banco$	Read Replies (1) \| Respond to of 289

PK, Sept. 28 Wall St. Journal, extensive 30 pg. section with emphasis on the euro. Sorry it's a bit late, but I am sure that a copy is readily available at the local library. Pages R18-R20: "Currency Contenders -- It's the euro vs. the dollar - and the winner walks away with an awful lot of goodies" Same type of figures mentioned as we have seen in the past. "C. Fred Bergsten, director of the Institute for International Economics in Washington, DC - a massive reallocation of international investment portfolios, with $500 billion to $1 trillion of assets shifting to euros, mostly from dollars." (no timetable given) Also "Diane Kunz, professor of history at Columbia University in New York, argues that financial and geopolitical power feed off each other, and that a shift away from the dollar would expose the U.S.'s financial vulnerabilities - its status as the biggest debtor nation, for instance - and therefore undermine its political clout....As a result, Americans would have to pay more for their import-driven lifestyle." These views are well balanced with other commentaries. It's worthwhile getting hold of a copy. Section headings (several articles in each): -Investing in Euroland -Once Burned... -The Corporate Challenge -New World Order -Essay -Rankings As for gold, I think they managed to skip that one.