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

To: Mike M2 who wrote (84229)	10/14/2000 9:21:39 PM
From: Thomas M.	Respond to of 132070

(from this week's Barron's) The Richebacher Letter 1217 St. Paul St., Baltimore, Md. 21202 OCTOBER ~ We continue to wait and to look for the dollar's collapse, like in 1985. Principally, what has been happening between the dollar and the euro is amazingly similar to what occurred in the first half of the 1980s. At the time, the world was bombarded with stories that the U.S. economy was enjoying miraculous structural improvements owing to ''supply-side Reaganomics.'' In line with it went the contemptuous story about Europe's economy, dubbed ''Euro-sclerosis.'' Everybody agreed that the dollar's strength was well-grounded in the U.S. economy's lasting superior growth performance. What's the difference between then and now concerning the U.S. economy and the dollar? Today's talk of ''new paradigm'' miracles is just as empty as the talk in the 1980s of supply-side miracles from Reaganomics. Yet there is one very important difference: The credit excesses of the 1990s have been many times worse than those in the 1980s, and so are, accordingly, the imbalances in the economy and the financial system. Just think of the euro's personal savings rate and the stupendous trade deficit. To speak of the U.S. economy's ''excellent fundamentals'' in the face of these disastrous facts requires lot of stupidity. -KURT RICHEBACHER (HO HO HO)