Re: Re: Jane D'Arista on Doug Henwood's Show

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

The way I understood it was slightly different.  As the Asian economies
earn fewer dollars, they will have to sell securities rather than keep
all of their financial assets in this country.  Presumably, does this was
not explicit, they would sell the securities rather than draw down their
reserves.

I heard some of the Tracy Quan, but it was not as interesting as I would
have expected.  I was wondering how her industry would reflect social and
economic changes, but I did not pick up much of that.

Doug Henwood wrote:

> Michael Perelman wrote:
>
> >Regarding the thread on exchange rates, yesterday Doug interviewed
> >Jane regarding exchange rates, posing Ellen Frank's analysis to her.
> >Doug might do better explain her analysis, since he was there.
>
> One things she said was that foreigners don't need to dump U.S.
> securities - they just don't have to buy new ones. Also, I think she
> said that as U.S. imports fall, fewer dollars will be floating around
> abroad looking for a haven. I'm not sure on that last point, because
> you can't always listen with full attention while you're doing a
> show. In a sense, Michael was more there than I was.
>
> Another point - when the European financial markets are fully
> euro-ized, they will be very deep and liquid. The bromide that big
> investors have nowhere else to go but dollar assets is becoming less
> & less true.
>
> Did you stick the show out for the Tracy Quan portion, Michael?
>
> Doug

--

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx