Sun-- We are in agreement, finally, about something - the balance of payments deficit. I looked at it as a cosmic joke that we gave the Japanese paper and they gave us electronics and cars. Even funnier was the panic that created.
FWIW, I've been in and out of the yen and dollar, basically holding that the US is still the less-weak of major economies. Tomorrow the Deutschebank may lower interest and that would auger well for the dollar. I'm short the euro and yen.
Cho--Italy, Spain, most E. European countries, and especially the UK--at great political risk-- have backed us. I'm leaving for Tuscany in 2 weeks and planning to enjoy it.
However, I buy products and services based on value, and love it that the whole world is now competing for my dollar. US made cars were a disgrace until the Japanese forced improvement, and all consumers benefit from this competition. All things being similar, I will now avoid french and German products because they pissed me off, and my semi-boycott gives me a satisfying feeling of righteous indignation.
Furthermore, economic interdependence is, IMO, the best road to peace. It is obvious now that the Japanese can't bomb Pearl Harbor because of the economic disaster to them that would follow. I'm meeting a Jordanian businessman who has been doing business with Israel and when that becomes mutually beneficial, chances of peace will increase.
I do not want to separate Europe from our mutually beneficial trade arrangements despite being pissed at the french.
fred |
