Text 6634, 27 rader
Skriven 2007-09-27 10:34:37 av Michiel van der Vlist (2:280/5555)
     Kommentar till en text av Paul Sanders (3:633/104)
Ärende: Euro vs Dollar
======================
Hello Paul,

On Thursday September 27 2007 16:16, you wrote to me:

 MvdV>> I hope you are wrong, no one would benefit from the Dollar going
 MvdV>> into free fall. But I am afraid you are right... :-(

 PS> I doubt 'free fall' more a slow and somewhat steady decline for a
 PS> while.

I hope you are right. I think everyone involved will prefer a slow decline over
a free fall. But I am not entirely confident. What if the market panics and
everyone wants to sell their Dollar bound assets? This time the Fed has managed
to damp it by lowering the prime rate. They can do that again. But not forever,
The rate can not go negative...

I remind again of the South African gold. They, the South Africans, frimly
believed that their currency would always be strong because they had the gold
and people would never stop wanting gold. Seems they were wrong.

In the US they firmly believe everyone loves their bonds. But what if people
stop wanting their bonds? What if China attempts to cash them in?

Cheers, Michiel

--- GoldED+/W32-MSVC 1.1.5-b20060315
 * Origin: http://www.vlist.org (2:280/5555)