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In
the financial world, this fluid cash demands return and is without conscience, or
awareness, it just exists, floating around. When one part of the world looks to be
a little chancy, the money is removed as stocks and investments are sold off and
the cash is placed where ever it can be secure for a while, until it once again is
invested. By purchasing any one thing, its value is increased because of demand.
In this case, it is the American dollar. Waves of money seeking refuge from its own
sell off of other assets creates an artificial demand. |
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This artificial demand has pushed
the stocks of commodities and companies, perhaps as much as thirty percent, above
their real, or actual value. In the spring and early summer we saw the DOW Jones
creep toward the 10,000 mark pulling other markets with it, but the nervous nature
of investment managers, spotted trouble in the Asian banking institutions, and the
withdrawal process began, as the shares and bonds were converted to American dollars,
the dollar rose and the shares value collapsed.
The situation in Russia is unchanged, there is nothing new there since Ronald Reagan
declared that the Free Enterprise System |
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