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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Lee who wrote (3130)8/21/2001 9:49:28 AM
From: Robert Douglas   of 3536
 
Lee,

The dollar, IMO, is too high. It's an imbalance that will be corrected by the markets at some point. As with most things economic, there is a good side and a bad side to it. For the rest of the world, the bad side has been that the high dollar has siphoned off too much of the investment capital of the world. It's hard to argue that the growth prospects for most of the world are less than in America. Even Europe, with their high unemployment and backward eastern countries, has more "growth potential" than the US.

But once the dollar falls, it will become necessary for other countries to pick up the demand load. This will mean lower interest rates throughout the world as these economies search for ways to stimulate this demand growth.

Robert
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