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To: JohnG who wrote (17394)	5/3/2000 6:48:00 PM
From: Jim Willie CB	Read Replies (4) \| Respond to of 35685

on currency destabilization, yes, others have mentioned it I get an original thought every 6 weeks, this is not one altho I watch currencies loosely, this triangle de-stabilization hits me in the face the Federal Reserve and Dept of Treasury watch these currency imbalances daily it is a central part of their job every single interest rate hike is executed with an eye on USdollar implications EVERY ONE as for talking TVheads, a few mentioned it today a few mentioned weakening Euro currency over last couple weeks hardly any of them make the connection between currency levels and pressure for Fed NOT to raise rates for God's sake, the Euro is down over 25% since early 1999 !!! a competent article on the Euro and that continent's economy appeared in Barrons last weekend excellent premise that a weaker Euro currency will exacerbate their economy's weakness, not stimulate it reasoning is simple Europe works in the USA's shadow if they dont raise rates when US does, the Euro gets crushed instead, it simply slides toward oblivion levels their currency is weak, it is hurting their econ growth their economy has now downward momentum Germany announced weak econ numbers a few weeks ago it is false to assume: Euro currency directly affects their economy it is true to assume: their economy directly affects Euro currency this contains a subtle distinction one must fully comprehend the devastating drag on the European economy from all the tightly held socialist bullshit traditions Barrons emphasized a widespread disapointment that European labor unions remain too strong, and that socialist inefficiencies are clung too rigidly what an incredible cost to prosperity!!! hence: Europe is in a bind, and must raise rates to shore up their currency, operating in the USA's shadow, thus weakening their economy further it is folly to expect a cheaper currency to lead to greater exports from Europe, since they have very few trade advantages... the worldclass trade advantages & products are owned primarily within the borders of the United States of America the USA rules, so mistakes by the Fed are felt worldwide the Federal Reserve has at its control the entire western world's economies I predict one more mistaken rate hike of 25 basispt in May then no more this year the recent burst of inflationary data is an aftershock due to Y2K / Jim Willie