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To: Robert Douglas who wrote (2705)	12/26/2000 1:54:11 PM
From: Thomas M.	Read Replies (1) \| Respond to of 3536

Of course Europe is fine. All of the propaganda about America's superiority revolves around a collection of factors that have been in place for a long, long time. The fact remains that the Dollar has not appreciated versus the D-Mark over the decades, and in fact has depreciated. Tom

To: Robert Douglas who wrote (2705)	12/26/2000 2:38:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

Hi Robert, I didn't want to give the impression that I'm outright negative on Europe. I reserve that view for Japan. It is just that I think Europe will continue to underperform the US. So while I think they will prosper long term I think they will get less growth than the could if they addressed some structural issues. And as you rightly point out so could we. Allow me to clarify my position on the Euro as well. I have no problem with the idea of a unified currency. It is the execution of the idea that I have trouble with. There has not been sufficient convergance of the member economies and this will inevitably lead to problems. The same monetary policy that works for Germany does not suit Ireland or Greece. Also the treaty leaves to many loopholes, imo. It is a real problem that there is no Euro sovereign. To work I believe a united economic policy will require united political and sovereign conditions. That will be a long time coming. And if they expand to the east it will exacerbate the problem. Henry

To: Robert Douglas who wrote (2705)	12/26/2000 4:16:11 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 3536

Robert, my problem with the Euro (and I voiced this prior to its launch) is quite simple. The EURO IS "backed" by a monetary policy which is supposed to be "right" for all of Europe, but each country has kept the right to conduct its own fiscal policies. There is no avoiding clashes between the the two in at least some of the Union's countries. Having a single European monetary policy but a set of many national fiscal policies will eventually cause disintegration of the system It is quite possible that the Euro was "forced" on Europe by Germany and France in order to attempt and create a political union as well (A Federation of the United States of Europe), but I doubt that Europe will be ready for such a political union for quite a number of years. Thus, the conflict between varying national interests and "The Union"'s interests will create impossible situations and eventually the disintegration of the Euro system, IMHO. Zeev