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 : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (25749)	1/10/1999 5:50:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 117274

And trade tensions are also increasing between the US and Japan, notably over steel imports. "Friction is unavoidable, but the issue is how to deal with it," commented Osamu Watanabe, vice-minister at the Ministry of International Trade and Industry. The decline of the dollar, if it continues, could exacerbate trade tensions with Europe and Japan, weaken the worldwide economic recovery, and precipitate a capital flight from the US. It could be one of the most significant economic events of 1999. Could this cause a capital flight from the US?? Possible. However, one thing I percieve assisting the US is that the dollar can be permitted to fall gradually, which boosts our ability to export and lessen the trade deficit incrementally. However, this doesn't help out Asia and Latin America, both of which rely on exports to the US and Europe to sustain their economies. Also, Europe will face increasing price competitiveness for US goods in their economic zone and hopefully a lessening of Europe's surplus with the US. So while the decline of the US dollar may reveal negative aspects for some, it also represents an opportunity to take advantage of the Euro. Being the global reserve currency may have its prestigious advantages, but it certainly hamstrings economic policy when every action you take has ripple impacts throughout the world. I don't know, but I think we'll be seeing a resurgence of US economic growth, especially if Y2K proves to be a non-event (knock on wood). Regards, Ron