IS THE U.S. DOLLAR DOOMED?

Asian Leaders See A Dollar Catastrophe Looming: "The view here is that
the US dollar will have disintegrated by the end of this decade..."!
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"By the end of 2003, according to JP Morgan Chase economists in Hong
Kong, the combined countries of Asia are expected to hold an
astonishing 70 percent of the world's currency reserves. In the past
decade, they estimate, Asia has added US$1.2 trillion to its US dollar
reserves as it runs up whopping trade surpluses with the rest of the
world - principally the United States, whose annual trade deficit is
expected to reach US$500 billion. Credit Lyonnais Securities Asia
(CLSA) in Hong Kong put the Asian reserves even higher, at perhaps
$1.5 trillion.

Is this a danger to the world economy?...The monumental scale of
Asia's dollar reserves and the size of America's deficit are starting
to make economists and strategists nervous. Wayne Godley, an economist
at the Levy Economics Institute in New York, writes: "If the balance
of trade does not improve, there is a danger that over a period of
time the United States will find itself in a 'debt trap', with an
accelerating deterioration both in its net foreign-asset position and
in its overall current balance of payments (as net income paid abroad
starts to explode). Such a trap would call imperatively for corrective
action if it is not at some stage to unravel chaotically."

It has been widely reported that the US must take in about $1.3
billion a day - about $55 million an hour - in foreign investment to
finance its overseas debt. If that river of money falters or dries up,
the difference must be made up by an inexorable fall in the value of
the US currency...

"The view here is that the US dollar will have disintegrated by the
end of this decade...' - ‘Asia Fills Her Boots: Dollar Reserves
Skyrocket' by John Berthelsen, Asia Times, July 15th, 2003

For detailed commentary, see
http://www.nwointelligence.com/NEWMONTH.HTM

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"...Mazanec at Investors Bank said the euro could reach $1.23 within
six months. He added that until the ECB begins voicing concern that
euro strength is a hindrance to economic recovery, traders should feel
comfortable testing the euro upside.

"All things are in place for a weaker dollar, stronger euro," he
said." - "Traders Consider Magnitude, Speed Of Dollar Drop", Kyle
Petersen, Reuters, 8th October, 2003

Although this is not intended to be financial advice, the future for
the dollar doesn't appear to look too good - a fact that may be
temporarily masked by a weak dollar-led export boom which may precede
substantial price increases [i.e. staggering inflation] in the cost of
everything the US imports [and nowadays the US seems to import almost
everything!]. For resources to help inform and protect yourself, your
business, your family and your assets if this does occur, see
http://www.survivalistskills.com/FOREX.HTM