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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (122212)	12/27/2003 6:59:42 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 281500

The markets have run out of room to finance the ballooning US current account deficit and the US federal budget deficit -- that is why the dollar is going down. And where are US interest rates now (market rates, not the prime)? bloomberg.com The 30 year mortage rate is lower now that it was a year ago, GST.. WHY?? And US 30 year gov't bonds are going for 5.37%, hardly indicative of markets being unwilling to buy them (which would result in far higher rates needed to attract buyers). What's interesting is that the EU is beginning to complain about the rapid appreciation of their currency because it eliminates their currency advantage related to exporting products.. That likely means more unemployment in store for Europe, which is already suffering under 9-11% jobless rates. What it could possibly also mean is that the US is starting to work towards its own hemispheric trading bloc. A low dollar benefits those nations that peg their currency to it. But I'm not yet seeing any signs of hyper-inflation.. If anything, we're barely keeping deflation contained in the face of lethargic economic activity around the world. Hawk