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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (95520)4/14/2002 11:23:13 AM
From: valueminded  Read Replies (2) of 132070
 
90/10:

I am getting very confused by the current economic environment. With short term rates below the inflation rate, how is it that the US is still attracting its required 400 billion of investment per year in order to maintain the strong dollar ?

Earnings have declined faster than prices, so stocks would not be where you would want to put this investment, interest rates below inflation, thats a negative, and money supply growth that greatly exceeds economic growth looks like a huge negative as well.

I am not sure what to make of all the above, but it would seem that the case for a strong dollar is pretty weak. Comments ?

thanks
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