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

To: re3 who wrote (81729)	6/17/2000 5:55:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Ike, I'm far from an expert on these matters, but that never stops me from giving a self-assured opinion. (bg) There are a lot of interrelated factors at work and I only have a casual understanding of them. I hate the US dollar long term because of our large debtor position and huge current account deficit. I think there's really only two ways to solve the problem. We can have a deep recession, blow out the bubble, and put our system in balance. That would eliminate the current account deficit but it might put the holders of our debt into a panic. We can devalue slowly. I dismiss the idea that we need to open foreign markets because even if we had other markets our economy is already stretched to the limit. In fact, if we had to produce what we currently import for consumption we couldn't do it. Politics dictates that the second option will occur. I think that's why the US pays higher interest rates on its debt than several other countries. Foreigners want a devaluation premium for providing the savings we don't have. If I'm wrong on that, then I think they should. The only argument I can see against this is that it appears to me that the world is eventually moving to 3 currencies - dollar, euro, and some Asia currency. If so, lots of dollars will be flooding the world for a long time and foreigners will be happy to accumulate them. Only compound interest payments can blow it up and that will take a long time. As far as Berkshire goes I never think about it. Wayne