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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (130198)	3/4/2001 1:02:32 PM
From: Nadine Carroll	Read Replies (1) \| Respond to of 769667

JDN, Our dollar is, and has been for a long time, heavily dependent on hoards of foreigners holding our Treasury notes because we have the world's reserve currency. If our interest rates go too low to be attractive and/or the euro picks up as a reserve currency, this could change. The dollar may have been too strong for our export good, but on the other hand, we have been essentially importing deflation from all our Asian trading partners since the Asian crisis of 1997. Other countries could not have run the enormous balance of trade imbalances that we do (over $30 billion a month!) without paying for it. Our bill may only turn out to have been delayed. I expect Greenspan will lower rates again. I don't expect it will do much good for the markets or the economy because both consumers and corporations are just about tapped-out, debt-wise. Especially after you add in the "reverse wealth" effect of a falling market. This is why I expect the rate cuts will be "pushing on a string".