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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: big guy who wrote (29120)	3/6/2003 9:05:28 AM
From: big guy	Respond to of 36161

<Earlier in the day, the US Treasury Secretary had expressed his exasperation at the failure of Europe and Japan to shoulder some of the burden of sustaining global growth. The USA has significantly eased its fiscal and monetary policies over the past two years but the growth generated by these means hasbeen shared with the rest of the world through the mechanism of an overvalued dollar exchange rate. Mr Snow's controversial language on the dollar serves notice that the USA is not willing to tolerate indefinitely the continuation of this state of affairs and that flexibility on the dollar is the channel through which the US authorities could ensure that more of the growth their policies are generating stays at home. The remarks also need to be seen in the setting of the Iraq crisis. The USA's international critics are inclined to see the dollar as the Achilles heel of the Bush Administration. Mr Snow was effectively saying yesterday that the Bush team does not care about the dollar's fate as keenly as the Franco-Russian alliance might suppose. It is prepared to countenance a dip in the dollar, and the short-term damage that may inflict on dollar-based markets, for the sake of its longer-term objectives. The point is that a fall in the dollar would not be free of consequences for the euro zone.> Message 18658838