Article View: sci.econ
Article #1873Re: Why does the world need the US consumer?
From: B J Foster
Date: Sat, 15 Mar 2003 13:50
Date: Sat, 15 Mar 2003 13:50
40 lines
2888 bytes
2888 bytes
Jan Holland wrote: > On Wed, 12 Mar 2003 10:08:47 +1100, B J Foster <bjfoster@yahoo.com> > wrote: > > >> >>Ryan O'Reilley wrote: >> >>>"Ville Ylipekkala" <punikki@SPAMSUCKSmbnet.fi> wrote in message >>>news:b49im1$ffk$1@plaza.suomi.net... >> > [--]>> > >>>Ever hear, "The customer is always rigth?" The USA says that we will buy >>>your stuff if you sell it for DOLLARS. You want gold, go sell somewhere >>>else, cause we aren't giving it to you. Japan wants gold? We'll buy from >>>Mexico. They want gold? We will go to Korea. S Korea wants gold, China >>>will gladly take the dollars. >>> >>>The USD rules, live with it. >> >>Okay, but I want a 20% premium to cover currency risk > > > That is not the point. > > The point is:: > Is the system stable as it is (and how long) ? > (US weak on dollar and energy) > It is precisely the point. To get the right answer you need to ask the right question. The question is whether USD positions can be unwound in an orderly manner. e.g. Japan "Like Hell, both are easy to enter and almost impossible to exit. In either industry, once you write a contract--which may require a large payment decades later--you are usually stuck with it. True, there are methods by which the risk can be laid off with others. But most strategies of that kind leave you with residual liability". (http://www.fortune.com/fortune/investing/articles/0,15114,427751,00.html)
Technical Details
Message-ID:
<3E732F8A.10902@yahoo.com>Path:
arc1-ca.pugleaf.net!archiver1.google.com!news1.google.com!newsfeed.stanford.edu!logbridge.uoregon.edu!arclight.uoregon.edu!enews.sgi.com!news.xtra.co.nz!news1.optus.net.au!optus!spool01.syd.optusnet.com.au!spool.optusnet.com.au!not-for-mailReferences:
<GAHYWK6Y37687.3107986111@usenet-nomads.com> <b49im1$ffk$1@plaza.suomi.net> <z%tba.15866$gF3.1396545@newsread1.prod.itd.earthlink.net> <3E6E6C7F.1030000@yahoo.com> <7sq57v08l2ej68261ibiuhg9gkb5bhrplc@4ax.com>Show Full Headers
Complete Article Headers
X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: fd5f7,9e757d91a19df3c2 X-Google-Attributes: gidfd5f7,public X-Google-Thread: f7ed3,9e757d91a19df3c2 X-Google-Attributes: gidf7ed3,public X-Google-Thread: 110f21,9e757d91a19df3c2 X-Google-Attributes: gid110f21,public X-Google-Thread: 105543,db86844e5a603813,start X-Google-Attributes: gid105543,public X-Google-ArrivalTime: 2003-03-15 05:55:11 PST Path: arc1-ca.pugleaf.net!archiver1.google.com!news1.google.com!newsfeed.stanford.edu!logbridge.uoregon.edu!arclight.uoregon.edu!enews.sgi.com!news.xtra.co.nz!news1.optus.net.au!optus!spool01.syd.optusnet.com.au!spool.optusnet.com.au!not-for-mail Message-ID: <3E732F8A.10902@yahoo.com> Date: Sun, 16 Mar 2003 00:50:02 +1100 From: B J Foster <bjfoster@yahoo.com> User-Agent: Mozilla/5.0 (Windows; U; WinNT4.0; en-US; rv:1.0.2) Gecko/20021120 Netscape/7.01 X-Accept-Language: en-us, en MIME-Version: 1.0 Newsgroups: sci.econ,alt.politics.economics,misc.invest.stocks,aus.invest Subject: Re: Why does the world need the US consumer? References: <GAHYWK6Y37687.3107986111@usenet-nomads.com> <b49im1$ffk$1@plaza.suomi.net> <z%tba.15866$gF3.1396545@newsread1.prod.itd.earthlink.net> <3E6E6C7F.1030000@yahoo.com> <7sq57v08l2ej68261ibiuhg9gkb5bhrplc@4ax.com> Content-Type: text/plain; charset=us-ascii; format=flowed Content-Transfer-Encoding: 7bit Lines: 41 NNTP-Posting-Host: 210.49.97.65 X-Trace: 1047736399 9536 210.49.97.65