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To: Mark Fowler who wrote (112127)	11/26/2000 1:54:08 PM
From: H James Morris	Read Replies (3) \| Respond to of 164684

>So would this affect our stock market? >The new president, however, will face a further deterrent to sensible policies. Because of its record trade deficit, America is not entirely the master of its own fate. The current expansion is being financed by a huge inflow of foreign capital as America buys much more from overseas producers than it sells abroad. If domestic growth falters, however, investors might have second thoughts. As the dollar falls, because of the sliding stock market and the pullout of investors, it could precipitate still more capital flight. And the falling dollar would be inflationary, pushing up import prices and probably persuading the Fed that to attract foreign investors it has to keep interest rates higher than it would otherwise. This would make a slowing economy still weaker -- and could push a merely weak economy into recession. Once again, many analysts are complacent. Some argue that the dollar will hold its value because, if the U.S. economy weakens, international investors will have nowhere else to go with their money as their economies will also sputter.