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FRED
07-09-06, 05:52 AM
Full, unedited questions, below. Due to space limitations enforced by the polling software, summaries of the questions appear in the actual poll where you vote. The summaries and complete questions appear in the same order.

1) What measures are financial institutions taking to manage counterparty risk in their otc derivatives, and how do these measures vary according to both sector and individual actor [i.e. commercial banks in general, versus variation among individual commercial banks]? Do these institutions know who their counterparties are since these contracts are often assigned after being negotiated? What will prevent a daisy chain derivatives implosion from causing not just a financial, but an economic catastrophe, short of the fed injecting massive liquidity and making all contract holders whole [i.e. the ltcm solution]? LTCM was a single, albeit huge [in terms of the nominal exposures of its derivatives contracts], institution so that the fed could intervene, as it did, in a very focused way. are there scenarios in which multiple institutions could blow up simultaneously and overwhelm the fed's managerial capacity?

2) What is your total, absolute, unequivocal asset allocation at this moment?

3) Given your concerns regarding larger increases in foreign holdings of U.S. national debt, and the Federal Reserve continuing down the road of less transparency versus their advertised "more transparency," is our most likely outcome, aside from a potentially cripling world recession, a return to a gold standard?

4) What are the top three or more things you've learned in your career that both the general investing public is unaware of or undervalues in importance, and that were relative surprises to you too?

5) Please provide in detail your opinion of the events leading up to and the impact to both Global and US Ecomonies in the event of implosion of both or either Mortgage Backers (ala chronic "Enron-itis"), keeping in mind the increase in Forclosure which are sure to come as the Interest rates are increased in the coming Months, as a result of easy access Monitary policies in the previous several years. What effect of such an implosion on the Overseas Investor confidence level as relates to the US Treasury and Bond markets would occur? With the current investigations into questionable accounting practices of both Corporations, and the likely losses forthcoming one must seriously wonder about the stability of these institutions, as I am quite sure would be the case of the Worlds Central banks as well as overseas citizens now holding US debt instruments in Dollars. Could or will America survive economically in such an event?

6) You have so much experience could please tell us your dream as if you were sitting on a cloud looking at Earth: What would be your DESIGN of a financial system. The thing in today's words including Central banks, Commercial banks, rules between them, shares, interest, euros, dollars, yuans, etc. but leaving the United Nations with its constituting countries intact.

7) My question is about US currency and its dominant role in international trade. Some would argue that the Dollar is losing its position, and with current account deficits as large as they are, that other currencies have already or will become the "gold standard" for safety and security in the investment community. What can the Fed do to keep the dollar well positioned, and is this even something that SHOULD be done?

8) How is money created and where do the interest payments come from?

9) For decades price stability has been the key to robust economic growth. In recent times, technological innovation and increased global trade has eased inflationary pressures and allowed interest rates to trend down to very low levels. In your view, is it possible that high money supply growth (even when needed to avoid falling prices), is it possible that the high money supply growth introduces imbalances more dangerous than a deflationary price environment?

10) GATA claims the gold price has been reduced and is actively being held down by a conspiracy among a cabal of central bankers, bullion banks and derivatives traders (these last 2 usually are the same corporation). Leasing is one technique they use. If you were hired by such a cabal and tasked with doing this (secretly suppressing the price of gold), how would you do it - In fact, COULD you or any agency you know of do it? I don't believe it IS being done, my question is about the ability of someone to do it and keep it a secret.. Oh, and one more thing, who is the one big Silver short?

11) It's been theorized that in the last 35 years asset bubbles have been created by a combination of monetary expansion, increasing debt, and easing credit standards. If you believe this to be the case who ultimately is paying the price for these fiscal policies and how can an individual investor not only hedge against the inherent risks associated with these bubbles but also profit from them in a real not just nominal way?