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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Stephen Krupa who wrote (2710)	8/27/2000 6:35:22 AM
From: Gersh Avery	Respond to of 33421

I believe that the reverse is actually the real picture, if you include investments. Yes. It's true that the US purchases many goods from Euroland .. But it is also true that Euroland spends even more in return on US stocks. This is one of the major reasons that the Euro has fallen like it has.

To: Stephen Krupa who wrote (2710)	8/28/2000 10:06:26 AM
From: Chip McVickar	Respond to of 33421

Hello Stephen, I believe John watches the accumulation of dollars in Europe and Japan, so I doubt he'd mind a discussion of the supply/demand of dollars. A strong case can be laid out that the stimulation of the USA economy over the last few years is greatly responsible for having fostered and even protected the balance of international currencies. In many respects this latest tightening by the fed is directly related to that on going puzzle. [Something along those lines could have been said about Japan some decades back and their relationship with Asia.] I expect we have many years ahead of us for continued growth and prosperity if we balance our economy and social structures. If our own countries monetary structure is sound and our debt is lowered to mitigate our dependency on foreign investments..., then let the world own as many dollars as they wish...! If they want yen or euro's...Fine..! It's only a problem when speculative forces concentrate on some imbalance. Everything seeks the way of least resistance and these commodity/currency markets are made up of people who disagree on value and price. As far as our social structure: IMHO the best way to secure the future stability of our currency against the inevitable strengthening of the Asian and European blocks is to reduce our own level of debt, secure the SSSystem against the need to barrow heavily in the future, establish a medical system that's prepared to treat the ill and not the healthy, reduce large government, improve education, moderate military expenditures, and apply modest regulatory "watch dogging" of those ingrediants that are the fabric of our society. My Best, Chip