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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Fred Levine who wrote (46363)	5/7/2001 7:18:28 PM
From: Cary Salsberg	Respond to of 70976

RE: "They have to spend it and buy something from us and everyone gets richer." They most likely will invest it in productive assets or debt. This creates a situation where the economy is doubly burdened by both the need to export profits and the need to export interest payments on debt. It definitely benefits consumers in the short run, but in the long run it destabilizes the economy. The pressure on the dollar and the economy builds and there is either a gradual return to trade balance or a situation is reached where the devaluation of assets and the credit worthiness of debt cause a dumping of the dollars.