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Politics : Foreign Affairs Discussion Group

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To: NickSE who wrote (33120)	6/25/2002 9:30:29 PM
From: Hawkmoon	Read Replies (1) of 281500

Call me conspiratorial, but I wonder how the Bush administration was able to arm-twist the Europeans into changing their stance towards Arafat's terrorist groups?? Could it be the falling USD, which Bush has not attempted to bolster?? The more the dollar declines, the cheaper US goods become overseas, and the more value European holders of US equities and cash lose. We all know the US has been subsidizing the European and Asian economic systems, helping them so they can restructure moderately and with less political pain than probably should be the case. So they know they have to rely upon US markets and a strong dollar policy so they can sell their goods cheaper... I wonder if Bush has been using the weakness in the dollar as a weapon (we canceled a $30 Billion 2 year note auction today, which now frees up that money to be deployed into the private sector)... I don't know... Just musing about how quickly the Europeans leaders are abandoning Arafat and joining the US. Nothing like a little economic "brinksmanship" to get their attention. Hawk

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