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To: goldsnow who wrote (53051)	5/21/2000 2:22:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116762

Interesting analogy, despite its intrinsic flaws of logic. The Euro is being bashed because there is a general lack of confidence that European political and economic policy will permit that region to properly restructure into something that creates the potential for attractive returns for investors. Since the stocks appeared overvalued there relative to performance, the weakening of the Euro is moving to create a risk premium. Secondly, oil is denominatied in Dollars, not Euros. Since oil prices have risen, more dollars must be held to manage the increased cost of imported energy. Thirdly, the Federal Reserve in launching it aggressive pre-emptive strike against perceived inflationary pressures is creating greater value for those who hold dollars instead of Euros. That suggests that the ECB will be forced into raising rates in a weak economy, potentially sending Europe back in recession. The strong returns in the dollar are not just battering the Euro, but almost every other currency with the exception of the Yen. Regards, Ron