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To: Ilaine who wrote (3068)	5/4/2001 11:52:32 AM
From: Ahda	Respond to of 3536

Cobalt i am aware that India has numerous brilliant engineers. I think by this move INTC has managed to secure it's future as growth potential in India is enormous and presently cost savings and creativity both abound. This impacted me from standpoint of American economic conditions not exterior growth. There of my question became are we entering into a prolonged slow down period now? The level of prosperity we have just participated in was partially due to our technology development and the hope of continued superior ability in said field. This aided the high level of employment and attributed to the total well being of the nation. Inflation then proceeded to veer its ugly head in CA, this came first in shortage of and inability to attract employees. Costs then started to climb and demand for land soared. Lo and behold a lack of electricity added to more costs and doing business in CA started to become far less lucrative than elsewhere. Projecting growth for the US economy is my foremost point. If we conclude we have one of the highest standards of living in the world we also have concluded that the difficulty then becomes to maintain that standard. If one states to me that we are financially based now and our service area will stem from this. I reply with our technological expertise was suppose to keep us at the top. As we experienced a slow down in our Detroit auto makers some time ago we could be entering into a slow down by far greater than we anticipated in out tech development. Definition of value of dollar. The US dollar had much purchasing power in other nations due to the fact here we experienced plenty for few dollars. In comparison to nations in similar position our dollar as a labor unit had great buying power. This changed partially due to the balloon and partially due to a shortage of heads. As we are all aware the market has been reducing surplus presently. It is seeking a point of profit and the economy at the same time is seeing a reduction in employment to facilitate that profit level. People needs, less employment equals less consumption. Successful Company prerequisites, low costs more profit the highest growth value for the dollar. Value of the dollar i can build elsewhere for a fraction of what i can here and I can employ as good if not better with a higher return if my dollar is strong. Interest rates there are many ways you can interpret rates. The reason for the lowering of rates is to induce the economy to grow . The economy is not showing it can grow or even maintain status quo or rates would not be reduced. Rather than just flushing out excess we are trying to maintain by ease of rates. Somehow we have out priced ourselves. You can't have growth without new products and when the cost of development exceeds the potential for profit growth limits itself. So said in US the cost has now reached the too high point. Rates attempting to stimulate growth also allow greater dollars value elsewhere due to enormous potential. India and China both have to this potential. The political conditions however in India are more receptive they welcome US companies. China is in a one step forward two back position, too time consuming to establish a business in. The question to me is simply will too many dollars be put into our economy where costs have appeared to have already exceeded growth value of investment. We can add to our inflation prone environment and at the same time dampen the possibility of new growth. Will our own nation find that we have reached a point where we continue to experience inflation due to monetary policy? Yet at the same time find we have a continued reduction in growth potential because our costs have become too high. There of our own economy could very well be entering an extended slow down period that will not in the near future be corrected but exaggerated due to the lowering of rates. The subsequent action of this could very well mean far less potential strength in the US and the result a lower US dollar value to the eyes of the world. Well said. It appears that fabulous wealth can be made in India - good for Intel, trying to benefit from India's growth. Dell is also looking to India as growth.