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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (67395)	3/20/2005 11:23:30 AM
From: Dave	Respond to of 77400

Amy, Our current account deficit waxes and wanes. Some years it is relatively good and other years it is relatively bad and currently it is really bad. As our gov't racks up debt and USD flow outside the country, these USD will be sold and replaced by other currencies further depressing the USD. However, as the USD declines, our goods and services become "cheaper" and, as such, demand will increase for our goods. While I don't know whether or not we are out of the woods yet, things will get better -- call me an optimist! One additional point, I hesitate extrapolating recent data points to draw conclusions regarding the future. For example, during the bubble years, remember the trillions in surpluses our gov't was supposed to generate? The "experts" looked at recent history and extrapolated the future based upon it. In hindsight, those estimates look pretty silly. All I can say with pretty good confidence is that the situation in the Current Account will fluctuate -- it may be bad now and it might get worse, but it will also get better. Regards, Dave