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To: Ahda who wrote (38074)7/30/1999 2:42:00 PM
From: Hawkmoon  Read Replies (1) | Respond to of 116762
 
Darleen,

Markets are one thing and I would agree that trade deficits do result in other nations plowing their dollars back into the US.

But the US economy is STILL predominantly a domestic economy. Exports only make up some 15% of our GDP, the last I recall.

How does that compare with Japan and China's domestic economy?

Actually, should the dollar decline in value, that is taken as a good sign for US economic health because our domestically produced goods are more competitive against cheap foreign goods.

It may hurt stocks in the short term because of the exchange rate differential, but when the dollar bottoms, they'll be back because our economic growth will be EVEN STRONGER as our exports become more marketable overseas (if the poor buggers have any money to spend).

Regards,

Ron



To: Ahda who wrote (38074)7/30/1999 3:27:00 PM
From: Rarebird  Respond to of 116762
 
Darleen, that is an excellent point. I would further add that when the U.S. goes into a recession, the World will certainly be affected in a negative way.

The Polyanna Bulls will learn from the old-fashioned Wall Street School of Hard Knocks.