Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (3130)	8/21/2001 9:49:28 AM
From: Robert Douglas	Respond to of 3536

Lee, The dollar, IMO, is too high. It's an imbalance that will be corrected by the markets at some point. As with most things economic, there is a good side and a bad side to it. For the rest of the world, the bad side has been that the high dollar has siphoned off too much of the investment capital of the world. It's hard to argue that the growth prospects for most of the world are less than in America. Even Europe, with their high unemployment and backward eastern countries, has more "growth potential" than the US. But once the dollar falls, it will become necessary for other countries to pick up the demand load. This will mean lower interest rates throughout the world as these economies search for ways to stimulate this demand growth. Robert

To: Lee who wrote (3130)	8/26/2001 2:10:06 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 3536

If in 6-9 months the US economy still falters and imbalances still persist the dollar may continue to struggle Well, there are currency imbalances, and economic imbalances. We're clearly seeing that the economic slowdown in the US is having a greater impact on Europe and Japan than here at home. Look at the recent 58% decline in the trade deficit between the US and Japan. That represents real economic decline for Japan and a further loss of jobs and GDP growth. And only the US economy, imo, is properly structured to more quickly recover from an global downturn, than are our competitors who continue to rely upon US consumers to subsidize their economies. That doesn't mean that there isn't the possibility for more downside on the USD, but economically, such an event will make US products more competitive globally. Hawkmoon