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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Louis V. Lambrecht who wrote (4120)6/21/2001 6:00:50 PM
From: Hawkmoon  Read Replies (2) of 33421
 
Dollar against the Euro: long way to go.

That's going to be just a little tough to swallow in terms of inflation, isn't it Louis?

The higher the dollar, the more costly oil becomes for the European and Asian economies.

And isn't there still an issue of financing all of those Eurobond issuances being used to rebuild Eastern Europe?

I would imagine that becomes a bit tougher when the market finds themselves lulled into the belief that the Euro has much lower to go..

Other than that, I do agree that possessing a hard physical currency is one of the more unifying elements of an economy and a people.

And unity is, for the foreseeable future, an artificial contrivance on the European continent. It's going to require some significant event to bind the European people together in a common cause, against a common enemy or opponent.

And that's why I believe we saw the GE/HON merger denied, and why the Europeans are creating a stink over Kyoto. Bush and the good 'ol USofA are likely to become increasing targets for negative European rhetoric. And it could be the opening shot, as many are suspecting, of an impending trade war and round of protectionism.

Hawk
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