Text 9299, 72 rader
Skriven 2005-02-24 22:39:00 av Jeff Binkley (1:226/600)
     Kommentar till en text av Gary Braswell
Ärende: WEAKENING DOLLAR?
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GB> GB>> What do you all think about the ever weakening dollar after the
GB> GB>> 2nd central bank worldwide announced they are dumping the
GB> GB>> dollar?

GB> GB>> Of course China and Japan, the largest holder of US debt won't
GB> GB>> be dumping anytime soon since they want our market to continue
GB> GB>> buying from them.

GB> GB>> But how much longer will other banks hold on?

GB> JB> It is weakening off of all time highs, which occurred during the
GB>stock

GB>Interesting. So the dollar really is not at record lows then?

Against the Euro, yes.  It hasn't been around that long.  Against other 
currencies, no.  Check for yourself:

http://www.chartflow.com/ozforex/charts.asp

punch up the Japanese Yen for the max data range and you'll see a couple 
of other times it was much lower than now.


GB> JB> market boom.  As long as our GDP remains where it is, there
GB> JB> isn't much to worry about.  The rest of the world, especially
GB> JB> Europe, has economies

GB>No doubt.

GB> JB> that are in much worse shape than ours.  I continue to worry
GB> JB> about how long the EU will remain together and when the civil
GB> JB> war there will start

GB>I have not heard of this before. Where do you think the break will
GB>begin?

Eastern and western Europe.  The same place it has in the past.


GB> JB> during the breakup. As for the announcemnt, I believe you are
GB>talking about
GB> JB> South Korea and that announcement is wrong.

GB> JB> http://www.foxnews.com/story/0,2933,148460,00.html

GB>Amazing how much difference a day makes. Glad to hear it was wrong.

Yep.  Gold dropped $2 per oz. today.  Don't think South Korea will ever 
stray too far from the US.  It isn't in their best interest to do so.


GB> JB> The increase in interest rates will help the dollar strengthen.
GB> JB> I personally don't get worried about the dollar until gold goes
GB> JB> over $450 and ounce and stays there for a period of time.

GB>A good indicator.

GB>I did not think of it.

Steve Forbes says it should stay at $350 per oz. for good economic 
health.  At $450 it is too high and at $250 it is too low.  I'll trust 
him for now.  He's got better contacts than I do.  It will be 
interesting to see what he says this June about the economy.  I'll post 
a synopsis about it.


Jeff


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