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

To: Knighty Tin who wrote (65320)	7/26/1999 6:35:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

an interesting article :" In 1998, U.S. domestic investment was 15.8 percent of GDP; net domestic savings were only 7.4 percent of GDP. The difference had to be financed from foreign sources. But capital flows from such sources have been drying up: During the first quarter of 1999, foreign purchases of Treasurys were at minus $17,256 million - the first negative quarter in at least five years. It is therefore plausible to assume that the Fed, a keen observer of global trends, targeted not domestic inflation, but a certain necessary volume of capital inflows with its rate rise. A stronger dollar and higher U.S. rates will encourage those. " atimes.com