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To: TobagoJack who wrote (4706)	6/10/2001 8:09:45 PM
From: Mark Adams	Respond to of 74559

I've held doubts about the trade deficit for some time. My concern centered on the propensity of larger companies to manage finances in such a way as to earn income in lower tax jurisdictions. Thus, national policy differences encouraging capital/labor configurations that may not be viable in a world where most advanced countries had similar policies in place. This is not limited to taxation, but also includes regulation (Occupational Safety & Health, Environmental etc). On top of this, you have US based companies earning income which are in fact owned by European or Asian parties. And vice versa. The world is just too complicated to point at the trade deficit as an isolated indicator. IMO. BWDIK? As an aside, someone on Longwaves said two factors would govern relative currency valuations. Local Real interest rates, and per Capita GDP {growth}. csf.colorado.edu BTW- I loved your post on the Hong Kong Cows. Message 15907307