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To: m jensen who wrote (62299)	12/28/2000 8:22:44 PM
From: Hawkmoon	Respond to of 116753

A tax cut for the Europeans would spur the consumer to spend, Absolutely..... But tax cuts must be matched by decreases in government spending or they face a similar situation as the US during the '80s when Reagan was able to get the 25% tax cut, but not the 25% budget cut he wanted as well. Thus, the growth of the US deficit. Since Europe as a whole is 2-3 times the population of the US making a cut in taxes somewhat more beneficial. And that's why it's amazing that with that many people they have not been able to generate greater domestic growth. I see today they are calling for a 50 point cut in Jan Probably going to be necessary... but it doesn't make sense does just at the point where the Euro looks to be finding support and trending upward. Decreasing rates is a defensive measure aimed at counteracting a predicted economic slowdown. I don't know the real game the ECB is playing here. It could be the equivalent of economic warfare through currency manipulation, or some kind of deception where they try to talk up the Euro, while secretly wishing it's decline.. Personally, it could be a combination of the two, with both "camps" constantly at odds with one another. Regards, Ron