Re: US DOLLAR CRASHING. DUMP IT QUICKLY1

[EMAIL PROTECTED] (Robert Ho) wrote in message news:<[EMAIL PROTECTED]>...
> [EMAIL PROTECTED] (LT Lee) wrote in message news:<[EMAIL PROTECTED]>...
> > Social Americans <[EMAIL PROTECTED]> wrote in message news:<[EMAIL PROTECTED]>...
> > > E. Barry Bruyea wrote:
> > > 
> > > > On Thu, 27 Nov 2003 22:06:09 +0800, "Yamashita"
> > > > <[EMAIL PROTECTED]> wrote:
> > > > 
> > > > 
> > > >>The US Dollar is on the verge of crashing. The expected windfall from the
> > > >>invasion of IRAQ did not materialise to give the Americans the psycclogical
> > > >>boost to their faltering economy. 
> > > 
> > > It is supposed to be a psychological boost for other countries around 
> > > the world to buy, hold and use dollars.
> > 
> > Not anymore. 
> > 
> > -----------------------
> > Foreign Lenders Bolting? + Trading Notes
> > 
> > By: Rick Ackerman, Market Wise Black Box 
> >  
> > How much longer will foreigners continue to support America's $1.5
> > billion-a-day borrowing habit?  Figures released by the Treasury
> > Department yesterday indicate they may already have turned off the
> > credit spigot.  Net capital inflows into the U.S. plummeted from $50
> > billion in August to $4.2 billion in September, implying that foreign
> > investors have recently begun to direct their surplus funds elsewhere.
> >  Sales of Treasury bonds accounted for nearly $20 billion of the
> > slippage. While foreigners bought a net $25.1 billion of Treasurys in
> > August, their purchases in September netted out to just $5.6 billion. 
> > The reversal was even more decisive in the mortgage markets, where
> > they sold a net $3.2 billion of Fannie Mae and Freddie Mac paper after
> > buying $8.9 billion of it the previous month.
> > 
> >  
> > 
> > Because the selling has been mostly from private accounts and hedge
> > funds rather than by central banks, it is unlikely the trend can be
> > reversed by mere political jawboning. It is global market forces at
> > work, after all, and the selling could intensify beyond remedy if
> > perceptions of the dollar should take a serious turn for the worse.
> > With the current-account deficit expected to reach $550 billion this
> > year, foreign credit has become essential to America's day-to-day
> > business. The trade deficit has burgeon steadily since the early
> > 1990s, but the offset of increased foreign lending has prevented it
> > from becoming a crucial problem.
> > 
> > Recovery in Jeopardy
> > 
> > Until now, that is; for, our dependency on foreign money to bridge the
> > gap between what Americans earn and what they spend has grown to the
> > point where even a relatively small shift out of dollar assets by
> > global investors could jolt financial markets badly enough to derail
> > the U.S. economy. Meanwhile, significant buying of U.S. assets by the
> > Japanese has long been an important prop for the dollar.  Most
> > recently, the Japanese bought a net $20 billion worth of our bonds and
> > equities in September, impelled by the need to boost exports with an
> > undervalued yen. They are acting in self-interest, of course, but
> > their motive could take an ugly turn toward self-preservation if the
> > rest of the world should start dumping dollars. That is one reason why
> > I will continue to recommend gold assets, and to regard each and every
> > dip in the price of mining shares as an opportunity.
> 
> RH:  Ha, ha, ha. Those who live by capitalism and globalisation will
> die by capitalism and globalism.

Also as the results of campaign financing. The Congress had defeated
FASB effort to tighten stock option reporting in the mid 1990s and the
Congress had passed the Safe Harbor Act allowed to corporations to
inflat corporate profits and guidiance. This lead to inflated stock
price. The wealth effect of the stock bubble in turn encourages
over-consumption.