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To: Thomas M. who wrote (2745)	12/27/2000 1:50:06 PM
From: Henry Volquardsen	Respond to of 3536

Europe's structural differences have been around for 50 years, and DID NOT result in lowered currencies. actually most European currencies were pretty weak over that period. The French, Italian and Spanish currencies have all suffered significant weakness over that period. The Pound was also a significant weakener and even prompted a crisis that required IMF support. The only exception was the Deutschmark and it's satellites that strengthened over that period. Ant the DM strength was in response to a rigid and tenacious anti-inflation policy that made it a safe haven during the inflationary era of the 70s and 80s. The rest of the European currency's only stopped their long term slides when they tied themselves to the DM regardless of whatever damage that did to economic growth. But the DM doesn't exist any longer. And the policy rules of the ECB are such that it is unlikely we will see a Bundesbank-like bulwark. In fact an audible sigh of relief was heard among the Club Med faction when the birth of the Euro put a dagger in the heart of Bundesbank tyranny. They took their medicine for 10 years and now they want cake. Henry

To: Thomas M. who wrote (2745)	12/27/2000 11:08:59 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 3536

The fact is that the ECB has talked the Euro down virtually since its inception. Hmmm.... they must have been doing that "talking down" in every language but English. I only have recollections of failed intervention after failed intervention, and the ECB trying to prop it up psychologically from the first day it started to drop after inception. And I have to ask myself why, with the entire future unity of the EEC at risk, they would make any public statement about some secret desire for the Euro to decline 30% against the USD. Now with the Japanese such bad mouthing of their own currency is definitely due to their desire to manipulate their currency downward. Regards, Ron