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

To: Kenneth E. Phillipps who wrote (520613)	1/6/2004 10:16:43 PM
From: TideGlider	Respond to of 769670

Actually the Euro has a problem surfacing. The Commission calls for the members not to run a deficit over 3 % (not certain) and Germany and France are beyond it. Speculation is that they know both countries do not intend to change their budget, so they will "liberalize" the rule. Then the rest of the countries will follow and the slope will begin.

To: Kenneth E. Phillipps who wrote (520613)	1/6/2004 10:27:43 PM
From: Oeconomicus	Respond to of 769670

Sure, but then whoever they buy those securities from is holding dollars (or whoever they buy Euros or C$ from to use to buy the securities) and must do something with them. Eventually, either they come back here to pay for US goods and services or they come back here as investment capital. Well, there IS one more option. They could just remain overseas, used in place of, or along side of, local currency as occurs in many parts of the world. In this case, we get goods and services for paper that just adds to the money supply of other countries. Not sure of all the implications of that, but interesting, eh?