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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 234.70-1.2%3:59 PM EST
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To: GST who wrote (123284)4/9/2001 4:48:43 PM
From: Wayners  Read Replies (1) of 164684
 
I haven't looked at any recent charts of the U.S. International Balance of Payment Accounts. Increased import oil prices certainly don't help the current account deficit. I think that savings and investment are going to be important to keep productivity high so that when we get back to growth, its growth without inflation. If our workers are at least as productive or more productive than our foreign competitors, that should keep people invested in the U.S. Right now we're seeing a global slowdown so I don't see why anybody would yank dollars out of the U.S. to patriate it elsewhere that is going to have the same problems. I think my biggest concern is that we'll see technology companies reduce their investment in R&D spending which would lead to slowing productivity growth and possibly make our products and services that rely on such technology less competitive overseas. I'm not sure what level of balance of payment deficits are needed in the current free floating currency environment. When the U.S. was on the Gold standard you could predict when the U.S. would have to go off the gold standard because the amount of the deficit was three times the amount of our gold reserves (in 1971). At what point do people lose faith in the dollar? There's probably a number of factors that could contribute to such a scenario in conjunction with the deficit. Usually chronic deficits are indicative of inflation and lower productivity than the rest of the industrilized nations. I can't really explain today's deficit. It can't all be oil related.
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