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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (10330)	12/12/2002 1:57:54 PM
From: Jim Willie CB	Respond to of 89467

I think USGovt officials (incl Fed) will attempt to usher the USDollar to a lower stable level they vastly underestimate the difficulty in retaining stability because they tend not to think it terms of CHANGE DYNAMICS their greatest fear is my expectation that a new dynamic resumes which was seen in spring it is all about the dollar, and impact to foreigners we cannot say "screw foreigners" since they own so much of our debt DECLINING DOLLAR VICIOUS CIRCLE higher import prices lower bond demand by foreigners translated losses in bonds and stocks by foreigners gradually higher interest rates lower corporate profits (from both higher supply costs and higher interest costs) lower stock prices severe damage to foreign exporter companies severe damage to foreign bankers holding USTBonds undermined foreign demand for our exported goods which lead to.... MORE DOLLAR DECLINES / jim