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To: c.hinton who wrote (5088)	12/17/2003 10:14:34 AM
From: isopatch	Respond to of 108546

Chinton. Good article. Among other important points is this: <Current account deficits and deflationary pressure are being shifted from the US towards other high-income countries. Among the most endangered is an already feeble eurozone.> Iso

To: c.hinton who wrote (5088)	12/17/2003 10:29:18 AM
From: Jim Willie CB	Respond to of 108546

nice US$ article, here is my takeaway "But, according to Mr Cliffe, it would take a 36 per cent increase in the rest of the world's GDP, a 34 per cent decline in the trade-weighted dollar, or some mixture of the two, to reduce the current account deficit to 2 per cent of GDP." a declining US$ will restrain GDP growth ex-USA that is the given here a 34% trade weighted US$ adjustment (not DXY) would wreek unbelievable havoc throughout the world and financial markets no way out, a world recession is essential EVENTUALLY I expect it to begin in China with a healthy correction but that would screw the USA bigtime, unleashing troublesome forces / jim