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

To: willcousa who wrote (663471)	12/1/2004 9:29:50 PM
From: TideGlider	Respond to of 769667

Kenneth is worried that he will lose a few pennies while waiting for his Social Security COLA to move opposite the dollar.

To: willcousa who wrote (663471)	12/1/2004 9:57:19 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 769667

The weakness of the dollar is a reflection of our budget deficit and trade deficit. A large portion of our debt is held by foreigners. The weakness of the dollar may cause them to stop buying Treasuries. Then, we are in trouble. Here is an article from Canada on the issue. Canada's fiscal position will help exporters compete, says Martin Sandra Cordon Canadian Press December 1, 2004 Canada has never been better positioned to take on global competitors, says Prime Minister Paul Martin. (CP PHOTO/Tobin Grimshaw) OTTAWA (CP) - With just 13 per cent of the national debt now held by foreigners - down from 45 per cent less than a decade ago - Canada has never been better positioned to take on global competitors, says Prime Minister Paul Martin. Martin's speech Wednesday night to a Liberal fundraiser came just hours after he waved goodbye at the end of a two-day visit to Canada by U.S. President George W. Bush. The prime minister was too tactful to directly remind his largely business audience of the growing divergence between Canada's falling debt and the soaring American deficits. But he suggested this country is in a far better position than most to compete in a rapidly expanding global economy. "When I became finance minister, people were very worried about debt - obviously, so was I," Martin told the well-heeled crowd of about 600. "But the fundamental issue that scared me more than anything else was that 45 per cent of our debt was held in foreign hands and we were hostage. "The number today is 13 per cent." In dramatic contrast, the massive American budget deficit is more than $400 billion US, much of it held by foreign investors who could pull out at any time. Analysts are becoming increasingly worried that the growing American budget and trade deficits could drastically slow growth in the United States, Canada's largest trading partner, which would sideswipe growth here. Already, waning confidence in the U.S. greenback is driving up the value of the loonie, making it harder for Canadian exporters to compete. Despite that, Canadian business is poised to expand its exports around the globe, helped by the free markets that are growing alongside more democracy, Martin said. Voters in Ukraine, for example, are struggling to assert their democratic rights over efforts to distort its national election, said the prime minister. "Election after election . . . countries are rising up and saying 'We want free governments and we want free markets' (which) is going to give us an opportunity that we've never seen before." With a government that is paying down its debt - now about $548 billion - and thereby freeing up funds for investment and reducing taxes, Canadian business can trade much more easily in the world. "This is going to open the world up to you," Martin said. "We are not going back into deficit . . . and the purpose of that is to give you the tools to develop the markets of the world on behalf of Canadians." Bush made his first official visit to Ottawa on Tuesday, discussing trade, missile defence, global geopolitics and other security issues. On Wednesday morning, the president made a quick visit to Halifax to thank Atlantic Canadians for helping stranded Americans after the terror attacks of Sept. 11, 2001. Martin used that topic to mend some Liberal fences. He led loud applause for the work of his former leadership rival, John Manley, who connected with many Americans as foreign minister at the time of the terror attacks. "In the immediate aftermath of Sept. 11, there is one person who spoke with a clarity of view on behalf of Canada that I think does underline the strength of the relationship between Canada and the U.S.," Martin said of Manley, who retired from politics before the federal election last June.