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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (412085)	6/9/2003 12:51:29 PM
From: DuckTapeSunroof	Respond to of 769670

The Euro is not what we should be focused on. Europe does not have a massive trade surplus with us. The devaluation of the dollar vs. the Euro will have only marginal impact on our competitiveness as a trading nation (although, vacationing Europeans will find a better deal in the States). Asia is the issue. >>> Once foreign investors 'wise up' and demand higher yields to buy our bonds... the long-tern end of the bond yield curve could change rather suddenly. >>> I've written before that the 'dollar devaluation' of the last year and a half won't do much for our trade imbalance - because it has only been against the Euro, and we don't have a large trade imbalance with Europe. >>> China 'pegs' it's currency to the Greenback so, when we drop, they drop - and their export advantage remains the same vs. the US, and increases along with ours vs. Europe. >>> Taiwan, Malaysia, Singapore, etc., also peg to the dollar (if unofficially), and Japan actively intervenes to keep the Yen down... so the dollar dropping vs. the Euro won't do much for US trade.