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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (1795)	6/16/1999 3:41:00 PM
From: Henry Volquardsen	Read Replies (2) \| Respond to of 3536

Wayne, I don't think the foreign inflows can fuel the credit expansion since those inflows have to be offset by the current account deficit and net US investment abroad. The balance of payments is more of a closed system. What it does effect is the price of various assets such as debt. I don't believe our non-inflationary growth has been the result of cheap foreign credit. I believe we have been more the beneficiary of imported deflation that via the strong dollar has helped keep commodity prices and in some sectors labor costs low. Also the US has seen an extraordinary gain in productivity. The productivity gains have been the result, imo, of advances in tech and the dramatic decreases in the cost of tech. Also the savings rate in the US is not negative. Those stats are notoriously inaccurate. Message 10139154