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To: Freedom Fighter who wrote (55292)	6/27/2000 3:31:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116844

That is the generally accepted view, but not necessarily the correct one. There are many economists that would argue that if demand for the currency is high then the currency should be allowed to appreciate and the deflationary forces to take hold. (slow the economy etc...) Wayne, I don't disagree with you on a fundamental basis. However, politically it is infeasible to have a soaring dollar while other nation's currencies languish, especially when global commodities they require are priced in US dollars (eg: oil) And possessing a weak currency compared to the dollar, combined with higher relative costs for US denominated commodities would cripple many foreign economies, causing investment capital to flee and probably not return until everyone was convinced they had absolutely bottomed. That's how wars start, and I would rather have the current system as it is, rather than have to fight off a bunch of starving Asian nations who feel they have nothing to lose. Regards, Ron