Commander in Pips: Very good. In fact, currently we see growth on stock markets with simultaneous demand for safe currencies – either the first or the second will fall… From that perspective – remember the chart of the Swiss stock index from part #3. Since demand for CHF is growing, but stock market is not – it means that investors do not put money into the stock market. They put them into bonds – if you’re interested, check Swiss Government bond yield by yourself. This in turn, means that there is no growth in the world economy, and growth in other stock markets has no serious foundation yet. Idea to chew on Also I just want to give you an idea to think about. Imagine that the dollar has failed. JPY and CNY can’t be the world’s safe-haven, as well as CHF, since their value are based either on currency reserves, that are in USD (Japan and China) or on strength of financial corporations (Switzerland). Even more – it turns out that as Japan as China have worked for the US for free during 3-4 decades. Since they get US Dollars for their goods, and invest them back in US Bonds to form currency reserves, which are worth very little after a failure of the dollar. It turns that the US has consumed all those imported Japanese and Chinese goods for free. Also, the world’s largest demand market does not exist any more, the economies of both Japan and China will fall in hard times. Probably the dominating role of commodity suppliers’ countries will rise – not goods, but particularly commodities and food. Among the majors we can call CAD, AUD and NZD. I will not give you particular answer – just think about this interesting stuff. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.