Forum Archive Index - February 2004

["Baa Baa" <baa_baa@hotmail.com>]

... from http://www.jsmineset.com ...

---snip--- the dollar would continue its decline, until the deficits of the 
U.S. Budget, Trade and Current Accounts are approached in a change of 
policy. During an election year, that is all but hopeless. By the time the 
incumbent is re-elected, or we have a new president in the U.S., the damage 
will be so severe that thereafter you could jam interest rates to the 1979 
highs -- over 12% on ten-year money -- and gold will set new records, with 
the dollar at a new major low, after low, after low. Gold and the dollar 
will have a reaction between prime rate increases from 1% to 1 ½%, but after 
that, they will reinstate their rise.
---end snip---

As a US$ linked currency, the Kiwi stands to be whipsawed like never before. 
On top of that, with absolutely no realistic method to respond/intervene, 
the future seems less and less likely to be founded in historical precedent.

Interested to hear peoples thoughts on what, if anything, that the Kiwi can 
do about it.

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http://www.xtra.co.nz/products/0,,5803,00.html !


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