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

To: Jim Willie CB who wrote (10894)	12/30/2002 5:05:41 PM
From: lurqer	Read Replies (3) \| Respond to of 89467

Thoughts? investorshub.com lurqer

To: Jim Willie CB who wrote (10894)	12/30/2002 5:44:05 PM
From: NOW	Read Replies (1) \| Respond to of 89467

nice post. The biggest threat a lower dollar, higher yeilds poses is to Japanese banks reserve requirements: this to me is the real threat. I wonder how many treasuries they have bought in the past week to fight off the declining dollar/yen?

To: Jim Willie CB who wrote (10894)	12/31/2002 5:12:46 PM
From: yard_man	Read Replies (1) \| Respond to of 89467

US consumers must retrench and when they do the trade gap will narrow, unless the government goes ape on some kind of fiscal stimulus program. The trade gap is the flip side of the current account deficit, right? so that must improve as well, but that means lower prices for USD assets as well as a lower USD vs other currencies. I don't understand how you think the trade gap can stay wide -- yes, the folks we import from will have less money to spend, but the huge imbalance is on the side of the imports that we make -- reduced consumer demand == reduced imports and that will more than make up for decreased demand for our goods abroad, IMO.