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To: 4figureau who wrote (4544)5/29/2003 12:10:22 PM
From: Jim Willie CB  Respond to of 5423
 
ECB is now facing similar challenges to heterogeneous USA
growth in Alabama has never been much
growth in Louzzeana and Texas depend on energy price trends
growth in California depends on both hightech and defense
growth in Boston depends on medical, pharma, finance

so Ireland has some price inflation, probably from the English-speaking disease infecting real estate price inflation

and Germany has price deflation, from years of restrictive monetary policy, probably conservative, and surely more prudent than anything dictated by English-speaking mammals

methinks this USDollar mini-bounce is owing to expectations that the ECB will close the gap between negative US real rates and low EuroBond rates
it is not from a 2ndHalf Recovery in USA

/ jim