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To: Elizabeth Andrews who wrote (34596)	5/28/1999 6:01:00 AM
From: David R. Schaller	Respond to of 116768

Elizabeth, Foreigners are leaving their foreign account surpluses in US $'s. They like the interest rates, the safety, & most of all the fact that as their own currencies weaken they can always repatriate their funds (later on) at an even greater profit. It's how half of US T-Bills come to be owned by foreigners. Who knows what would happen should the psychology & investment climate change. Could be nasty. Dave

To: Elizabeth Andrews who wrote (34596)	5/28/1999 7:56:00 AM
From: Bobby Yellin	Respond to of 116768

Couldn't the demand for the dollars simply be foreigners buying into our stock market and bond market? I have no idea how the trade deficit will come down gracefully.. who can afford US goods?

To: Elizabeth Andrews who wrote (34596)	5/28/1999 1:04:00 PM
From: Zardoz	Read Replies (3) \| Respond to of 116768

"Why doesn't somebody explain to me why the US$ is relatively strong with respect to all currencies and absolutely strong with many currencies when our country's current account deficit is at record levels? What is creating the demand?" Growth rate in the USA is pretty much the highest in the world. And with a higher growth rate, the GDP will out pace the trade deficit. Or if you prefer, the trade deficit can be held in abeyance until growth picks up in other countries. This is why I suspect Asia is not truly out of their problems. A pick up in seasonal commodities, doesn't mean that Asian/Europe production has increased noticeably. Still a bear on Asia here. Growth.