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


To: DizzyG who wrote (676438)3/22/2005 4:16:16 PM
From: Wayners  Read Replies (1) | Respond to of 769669
 
The mechanism for the correlation of course is thru interest rates. Deficits devalue the currency, the davalued currency requires higher interest rates, and the higher interest rates make is more expensive for companies to borrow money and invest.



To: DizzyG who wrote (676438)3/22/2005 5:08:44 PM
From: Kenneth E. Phillipps  Read Replies (2) | Respond to of 769669
 
Every month they announce the trade deficit figures, the market tanks. You haven't noticed?