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Politics : Ask Michael Burke

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To: BGR who wrote (84188)10/13/2000 3:48:28 PM
From: Freedom Fighter  Read Replies (2) of 132070
 
BGR,

I still think there's a variety of interrelated factors that determine the strength of a currency. Economic growth is certainly one of them, but I think it's more complex than that. Sometimes it's as simple as "greed" and "fear".
Even though I can't prove it, I'm fairly certain that a lot of the money coming into the US has simply been chasing the better returns from the stock market. More or less - momentum investing on an international level. That in turn has made the US economic performance better than it would otherwise be by providing hundreds of billions of dollars of savings for investment that would otherwise not be available. A chicken and egg scenario.

Wayne
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