Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Earlie who wrote (73660)	1/14/2000 5:38:00 PM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

Well, actually, BGR could be right. Say these "foreigners" all take their next paycheck, buy dollars from us, and invest here. We're stuck with a bunch of yen, pesos, and loonies we can't invest in INTC like we want, so we have to buy Hondas, tequila and.. well, whatever they make in Canada. -g- -mb

To: Earlie who wrote (73660)	1/14/2000 10:41:00 PM
From: BGR	Read Replies (2) \| Respond to of 132070

Earlie, It is really the same from an accounting perspective. The dollar is just the medium of exchange, in effect the foreigners are exchanging consumer goods for US financial assets. I am surprised that you of all people didn't know this simple equation in international trade! As long as foreigners think that US financial assets are worth more than the goods that they are selling to buy those, the dollar will continue to rule. IOW, a trade deficit doesn't automatically translate to a weak dollar as so many erroneously claim. One has to understand the domestic economy as well (which, incidentally, is doing rather well). -BGR.