(Tia dives into the stock market mechanics of the world prior to a historic economic turning point. The introduction of the Euro was taking place at the time and its possible effects on the economies of the world was a subject Tia had researched and knew a bit about.) 

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Tia: okay, let us look at my favorite subject, the stock market. Again, another new high today, up 150 points.

Russ: was it?

Tia: uh-huh.

Russ: it was down three when I saw it.

Tia: ahhh, well news from Greenspan contributed to the increase as well as the better than expected profits from various companies this quarter. What's happening is much as I predicted right?

Russ: uh-huh.

Tia: the very, very rapid growth rate. This has contributed to the better-than-expected earnings, Greenspan's report on the state of the economy and his saying that eventually the interest rate will have to go up but at the moment there is no inflation which is a lie, there is inflation but it's only a little inflation. I see from this overconfidence. Where does the market go from where it is at the moment? There's only one place for it to go which is?

Russ: up.

Tia: exactly. There will be little downturns which are basically profit-taking so if it loses 1.5% of its profit, that's nothing.

Russ: just a drop of 80 points?

Tia: 80 points, 150, that's nothing, that's peanuts. So there's nothing much to watch out for at this time apart from the continuing increase in the price of shares which in my opinion are very much overly priced. After all, from 1994 to today, it's gone from 3,000 to 8,000 which is a jump of 5,000 points. Very, very strange, very strange, shouldn't be doing that. And the fact that it took approximately 50 years to get to 3,000 and then a sudden increase as it has at present is quite concerning and there are people out there that are expressing their concerns. But let us not dwell on the stock market as that could take up too much time. Any questions?

Russ: with the so far as they've been noticing the strength of the dollar's growing?

Tia: it is?

Russ: supposedly.

Tia: in comparison to what, the yen?

Russ: well as a comparison from what it was a while ago.

Tia: uh-huh.

Russ: and with that it's making our trade deficit wider.

Tia: uh-huh.

Russ: now how do you see that as affecting the basic economy from that point?

Tia: well it's going to be more reliant on internal facts. The fact that the dollar can buy more now against most currencies means that importing American items let us say to Germany, means that it becomes more expensive whereas if Germany is exporting to the United States, their products become cheaper and so therefore it benefits the German economy. However, if you look externally at European markets, the question is why have they become shaky currencies? But it's primarily to do, if you look at the euro......let me readdress this matter a little. The euro is a new currency that will be coming into effect soon. The attitude of some governments is to let it decrease or their currencies decrease in value so that their populations are used to a different currency. When it comes, it's looked upon as a relief, "oh a new currency, our standards of living will go up." The euro, having started off on bad legs, will become a shaky currency like the Mexican lire or is it peso in Mexico?

Russ: peso.

Tia: the Mexican peso or the lire that are dodgy currencies. Not very strong and you can have a 1,000 pesos, which is worth how much Russ?

Russ: a 1,000 pesos is approximately $150.00.

Tia: exactly, not very much at all. So that you have this shaky currency in an industrial area such as Europe, now what does that do?

Russ: well it's going to destabilize the economies of those countries using it.

Tia: correct.

Russ: but now is the euro some kind of common......

Tia: currency.

Russ: currency that they've been working on for years?

Tia: correct.

Russ: so it's going to be valid in what countries?

Tia: it's going to be valid in Greece, Italy, Belgium, Netherlands, Luxembourg, United Kingdom, Ireland, France, Spain, Sicily, Turkey.

Russ: Greece?

Tia: Greece.

Russ: Russia?

Tia: no.

Russ: or are they going to hold with the ruble?

Tia: Russia is not part of the EEC. It's all EEC countries that will be having one currency.

Russ: so it's everything but Russia.

Tia: no Poland's not a member of the EEC, not yet.

Russ: I thought they got, they were looking for admission?

Tia: yeah, they are.

Russ: they haven't been approved yet?

Tia: not yet. They're pretty close to being approved. You see what's happening is that by creating this one currency, you're destabilizing the economies.

Russ: well isn't this the sign, one of the signs of the apocalypse?

Tia: could be. Not by my predictions though.

Russ: from the Bible.

Tia: not from my predictions........from the Bible?

Russ: uh-huh.

Tia: yours or mine?

Russ: ours.

Tia: oh yours? I haven't read yours.

Russ: yeah, it's one of the, apparently one of the signs.

Tia: okay, my dissertation's over, do you have any questions for me young lady?

Ann: no, not right now.

Tia: okay, actually.......nevermind.