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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (542)	7/15/2001 2:04:19 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Long live the almighty dollar cbs.marketwatch.com By Paul Erdman, CBS.MarketWatch.com Last Update: 12:17 PM ET July 12, 2001 SAN FRANCISCO (CBS.MW) -- All of a sudden everybody from the New York Times to the National Association of Manufacturers to the Governor of the Bank of England are trying to talk down the dollar. And all are doing it for reasons that are highly suspect. ............................................................................................................................................................. Then earlier this week, on the occasion of a meeting of the central bankers of the Group of 10 in Basel, The Governor of the Bank of England, Eddie George, chimed in. He claims that an overly strong dollar is responsible for an overly weak euro. Such weakness has driven up the cost of imports so much that inflation in Euroland is now at its highest level in eight years. That of itself is bad enough, but even worse, he says, is that such a high rate of inflation induced by the strong dollar inhibits the European Central Banks from taking the necessary step of countering disappearing economic growth in Europe by lowering interest rates a la Greenspan. In each case the dollar bashing arises out of vested interests - political, as in the case of the Times, narrow sector interests, as in the case of the manufacturers, or advancing the cause of Europe at the cost of the United States. .......................................................................................................................................... A strong dollar plays a major role in keeping U.S. inflation at acceptable levels. By doing so, it allows Greenspan to do his thing without having to worry about the potential inflationary consequences of continuing ever further along the path of monetary easing. At the end of that path lies recovery. So where both inflation and recovery are concerned, maintaining a strong dollar is resulting in a win-win situation for the vast majority of Americans.