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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: patron_anejo_por_favor who wrote (42306)1/17/2003 1:35:38 PM
From: Haim R. Branisteanu  Read Replies (2) | Respond to of 52237
 
Impeding war should be positive for the USD as oil prices will fall and a big chunk of the deficit will shrink and US credibility will rise.

As to budget deficits Germany France Portugal Spain and Italy all have budget deficits of around 3% or even as high as 3.5% of GDP. The US budget deficit will be around 2 to 2.5% ........and that is a BIG difference.

Further last year GDP in Germany was close to 0% growth and next year projected at 15 growth. The US may finish with a 2.5% GDP growth, and slightly higher next year.

All those factors make up for the trade deficit.

The most evil from the dual deficits are budget deficits

A year ago the USD was 20% higher from were it is today ------- BIG difference