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To: Jim Willie CB who wrote (287)1/20/2003 4:03:01 PM
From: yard_man  Read Replies (1) | Respond to of 1210
 
yes, but of the fraction of USDs they take in which come here -- these go in two directions INto the US

1) purchases USD assets

2) purchase US goods and services

If they are slowing the purchase of 1 and they are not getting 2 currently at "binge" levels for them, I don't see it following that their imports slow faster than ours.

The indirect effect you mention makes sense -- reduced profits from reduced sales to US. But our stuff will be cheaper in their currencies -- this and the fact that consumption in these countries has room to grow considerably considering demographics should help counter the initial depressive effect of our reduced imports. These countries have pent-up demand which should be price sensitive to some extent.

I'm not saying our exports will grow, just not shrink as fast as our imports. Makes sense to me -- let's see what happens.

Which Asian countries' economies are humming along, besides China??