God-ness this stuff gives me a headache.

[pms]

I'm confused.  Don't bonds go down when interest rates go up?  The gold-bugs
talk a lot about the ZAR and the AUD.  I find it interesting that at first
both currencies strengthened along with the Euro when the USD went down,
which seemed to cut into the hyper-performance of SA gold mining stocks
where the spin has been that they sell gold for dollars but pay wages in
cheap rand.  Then a coupla weeks ago the rand started weakening in a total
disconnect from the dollar action (or rather, a new connect)  In fact with
the Mexican peso I was wondering if all the countries that have a lot of
gold assets might be weakening against the dollar, for some
reason(wink-wink).  Seems we're going after Venezuela again too.  Hmm.
Water in Uganda.  Maybe it's a Basic Commodities Rush.  Who knows.  But
there's a message in them there currency fluctuations.
----- Original Message -----
From: Charles Jannuzi <b_rieux at yahoo.com>
To: <lbo-talk at lists.panix.com>
Sent: Monday, June 17, 2002 12:50 AM
Subject: Re: God-ness this stuff gives me a headache.


> Just tying up a few things that go with this
> title.
>
> Well, I bought diversified holdings in bonds and
> I bought the Australian dollar when it was worth
> 47 cents. So let's see if these two ponies will
> take me for a ride! BTW, the cheap AUS DOLLAR was
> one of the big reasons the Australian economy has
> boomed. In modern economic terms, think of a
> cheap currency as a great way to export deflation
> if most everything else is in order for the new
> financial regimes.
>
> Now as interest rates go up, so too will the
> value of the Aus$. The Australians certainly
> aren't happy about the big 'f you' the US just
> sent the Cairns group with its enormous
> agricultural subsidy program.
>
> And for all the back and forth goings on with the
> US dollar, I can tell you, it's staying cheap
> versus the yen.
>
> Charles J
>
>
>
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