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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (67092)10/30/2003 1:30:14 AM
From: Real Man  Read Replies (1) of 94695
 
Yeah. Right now the trade deficit is about equal to the budget
deficit. So, they can buy all the new treasuries on the market
if they want to -g- Of course, there are other choices for
them, such as agency bonds, corporate bonds, etc.

The trouble is... United States has become a mostly service
economy. So, when the dollar drops, it won't help the trade
deficit? In terms of the manufacturing part of US economy,
trade deficit is not 5%, more like 25%. The dollar has to
drop a lot to just bring it back to balance, then some more
if foreigners want their trillions (what's left of them)
back, which is unacceptable.
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