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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (19222)	12/21/2004 1:17:36 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

They can never make a penny out of me<g>

To: NOW who wrote (19222)	12/21/2004 1:33:56 PM
From: mishedlo	Respond to of 116555

Conversation with Heinz on the US$ Mish: Is the Dollar Really Overvalued? As the size of the U.S. current account deficit gradually receives more attention, it has become an article of faith that the U.S. dollar is overvalued. Not so fast. By John P. Hussman, Ph.D. hussmanfunds.com check out his piece in 2000 hussmanfunds.com Excellent work? Sure looks like it. What do you think? Heinz: very good stuff - and note, Hussman also mentions that a current account deficit , PER SE, is NOT a reason to expect a currency to weaken. (i would however add that it adds one of the preconditions for currency weakness in the long run). he doesn't say it outright, but an important point is HOW MUCH OF it is created, relative to new currency created elsewhere. note also, while Hussman contends that the dollar isn't really overvalued relative to its PPP and rate differentials , he also mentions that he would NOT bet against a continuation of the trend at this point in time. i have a hunch that he's right about that, even though a corrective rally in the dollar seems likely short term.