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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (526)	4/29/2003 12:56:26 AM
From: GraceZ	Read Replies (2) \| Respond to of 4905

Almost all of it. If they are to avoid causing their currencies to appreciate, they must invest their dollar earnings in the US. They certainly don’t do it because they believe NASDAQ shares can only go up or because they have strong faith in US accounting standards. Think about it, if we can spend dollars anywhere in the world so could our trading partners. Those dollars get invested back here because the individuals in charge of deciding what to do with their dollars decide to put them to work in US securities. The guy acts like these people only have two choices, invest in US financial assets or devalue their own currency. Now think about all the things you can do with dollars besides buy US stocks or bonds...if you can do it so can they. The imbalances in the current international monetary system are also bad because they are unsustainable. The United States cannot continue going into debt to the rest of the world at the rate of $1 million a minute indefinitely. The guy also thinks that the only way money or value is created in an economy is by selling something to someone outside of your own country or from borrowing. The US has had an extremely robust internal economy for years and years. We aren't dependent on exports to add to the store of value. A bunch of low labor cost nations create low cost low margin goods which we then turn into high value high margin goods and services both tangible and intangible.