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To: 4rthofjuly007 who wrote (67573)	2/27/2003 6:29:06 PM
From: mishedlo	Respond to of 209892

Europe does not have as big a balance of trade issue as US The world is not awash in Euros like $ That my take but not sure if correct M

To: 4rthofjuly007 who wrote (67573)	3/4/2003 12:40:29 AM
From: Perspective	Respond to of 209892

I think the strength in the Euro can be understood mathematically. When you're running a $45B/month trade deficit, it doesn't take bearish dollar sentiment to push the currency lower; all those foreign claims on dollars must eventually be exchanged for local currencies. Absent the immense inflows that balanced things out at the height of the bubble, the dollar must fall to find equilibrium given all the foreign trade sellers. The dollar will decline until the trade deficit is worked down, period. Once in motion, that object will remain in motion. Given that markets tend to overshoot, I expect it to be a lengthy, painful correction for our economy as well as the rest of the globe. Wouldn't be surprised to see the Chinese currency - and gold - take over as the international standards of commerce. BC