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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (135862)	12/16/2001 12:43:21 AM
From: GST	Read Replies (3) \| Respond to of 164684

Bill, you are dead wrong when you say -- "The money has to be reinvested in something here to be repatriated. That's why I said the guy who does the buying surrenders his dollar, but that doesn't affect the value of the dollar. Your point is in the context of currency value, right?" The value of the dollar depends on the supply/demand for the dollar. It is surprising to me that you do not understand the basic mechanism here.

To: Bill Harmond who wrote (135862)	12/16/2001 12:46:38 AM
From: GST	Read Replies (1) \| Respond to of 164684

From your posted link -- "This desire to purchase U.S. assets, in turn, drove up the dollar and kept interest rates low—conditions that contributed to the increase in the trade deficit. Thus, the growing trade deficit in the late 1990s can also be viewed as the outcome of the fact that U.S. assets in this period were in high demand worldwide." This is how we finance our purchases of foreign goods -- by selling assets. We get the cars and electronics and they get future financial obligations which are part of the current account deficit, and they are the key to the swelling of the current account deficit.