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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: DJessen33 who wrote (64900)	7/20/1999 10:55:00 AM
From: Mike M2	Respond to of 132070

DJ, a trade deficit has never been considered a sign of a healthy economy until now but it is all spin. Eventually, a trade deficit will weaken your currency and the central bank will be forced to raise rates to defend that currency. Not a very good prospect for a nation with a negative savings rate and $5+ trillion in debt. Mike

To: DJessen33 who wrote (64900)	7/20/1999 11:15:00 AM
From: Freedom Fighter	Respond to of 132070

DJ, >>Can you please explain how a larger trade gap is evidence of a healthly economy?<< There is a cyclical component to the trade deficit. If one economy is much stronger than its trading partner's economies, a trade deficit will generally occur. In the U.S. case it has been chronic for well over a decade so its current size is one part cyclical and one part imbalance. Wall St. only wants to talk about the cyclical portion, not the inevitable decline of the dollar. Wayne