On Wed, 9 Feb 2005 21:10:56 +0000 (Hora padr�o de Greenwich), [EMAIL PROTECTED] <[EMAIL PROTECTED]> wrote: > I had been accompanying with quite some interest the discussion on Goanet > about democracies and dictatorships. I wish the discussants could also take > up the following texts into consideration > > http://globalresearch.ca/articles/FRA501B.html
Excerpt and response:- ....................Uncle Sam has reneged and defaulted on up to 40% of its trillion-dollar foreign debt, and nobody has said a word except for a line in The Economist. In plain English that means Uncle Sam runs a worldwide confidence racket with his self-made dollar based on the confidence that he has elicited and received from others around the world, and he is also a deadbeat in that he does not honor and return the money he has received. How much of our dollar stake we have lost depends on how much we originally paid for it. Uncle Sam let his dollar fall, or rather through his deliberate political economic policies drove it down, by 40%, from 80 cents to the euro to 133 cents. The dollar is down by a similar factor against the yen, yuan and other currencies. And it is still declining, indeed it is apt to plummet altogether. RESPONSE: If one takes into account that the Euro was floated in 1999 at a rate of around 1.17 US Dollars the devaluation is not that great (around 9 percent). Before the Euro's existence, I have seen and traded the US$ at a high of more than US/Deutsche Marks 3.45 and a low of around US/DM 1.40. So these fluctuations were all within scope despite causing some discomfort at the time for either Europe or the U.S. I believe if and when the Euro devalues more than 25 percent from the Euro's inception rate then one should start worrying. Any way for the moment the Euro/US$ rate is treading water and the US$ might even start to appreciate. The Foreigners are in a bind - Especially Japan and recently China who are accumulating vast holdings of US$. It is not in their interest to see the US$ being dumped. The whole world will be in a bad way if and when foreigners start to panic. Perhaps the US authorities know this and hope the rest of the World will continue to support the mighty USA come what may. cheers, Gabe Wimbledon, London.
