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Does anyone have charts showing the price of gold in the asian currencies?
Would be interesting to see if provided a hedge in the currency collapses.
BobR
At 02:40 PM 1/10/98 -0600, Harley Meyer wrote:
>Last week Robin, retired from the McNeal / Lehr News hour, had a program
>that included a segment on Malaysia. He discussed the economic
>conditions and how the problem began. He also discussed the plans for a
>Cyber city in Malaysia that companies like Intel & several others are
>backing. This time the investments in Malaysia will be from the private
>sector instead of the government work programs. So there is the chance
>that some of these countries can bounce back when companies step into
>invest.
>
>However, I do think it is a little more complicated than that. I pulled
>out the econ books and have started to look at international monetary
>policy. I haven't made it through the chapter yet but did a little
>skimming. From what I understand you can check the well being of a
>country by looking at the current account and balance of payment. Since
>there are complex relationships that makeup the current acount/Balance
>of payments that there is a certain amount of risk depending on the
>economic soundness of a country. For example there are relationships
>between countries currencies-exchange rate, inflation rates, foreign
>investments, imports, exports, to name a few. They all have to be in
>some reasonable balance. If not we have problems like the exogenous
>shock to the Asian economies from the currency speculation.
>
>Although i haven't shed much light in terms of balance of payments and
>the current account since I have just pulled out the books. So the point
>I am trying to share is that investment in these countries by companies
>is not as easy as we think. Just because they have depreciated
>currencies.
>
>Harley
>
>John Chamberlin wrote:
>
>> I have a thought pertaining to the Asia crisis.
>>
>> The media has been focusing on this problem as it
>> relates to corporate earnings, reduced sales in asia
>> etc.
>>
>> I lived in Japan for 11 years and have traveled to
>> most asian countries many times. We don't sell
>> anything in asia! All of the products are asian.
>>
>> Heres my thought. Although we don't sell anything in
>> asia we do mfg most things in asia.
>>
>> Can it not be said, therefore, that corp earnings
>> will be significantly higher for corp that mfg in
>> asia due to the weakening foriegn currency and
>> strengthening dollar.
>>
>> i.e. Nike mfg cost for shoes has been reduced by
>> nearly 50% due to the weak asian currencies. The
>> same can be said about all of the electronic mfgs.
>>
>> I understand in exporting terms our products will
>> cost more in asia and therefore be less desireable
>> but as I hae already stated we (americans) don't sell
>> anything in asia.
>>
>> Conclusion: Falling/failing currencies in asia may
>> be bad for asians and bad for future exports but more
>> importantly, great for US companies who mfg in asia.
>>
>> John
>>
>> ===
>> john@xxxxxxxxxxxxxx
>>
>> One friend in a lifetime is much; two are many; three
>> are hardly possible.
>> --Henry Adams
>>
>> _________________________________________________________
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