From: "Gary Britt" 

Welcome back Randall!!

Gary

"Randall Parker"

wrote in message news:422a4db5$1{at}w3.nls.net...
> The dollar surged far after the Euro first made its debut and now the
dollar has
> given up its gains. This is just normal currency fluctuation. The dollar
could
> (probably will) go down further to due to the trade deficit. This has
happened
> before. Remember the 1986 Plaza Accord? Aware of what happened to the US
trade
> deficit as a result? Did the US currency become "Third
World" as a result?
(and
> whatever does that mean anyhow?)
>
> The US faces the problem that the Chinese and Japanese want to buy US
bonds in order
> to maintain large Chinese and Japanese exports. This, and not the US
government
> deficit, is the cause of the trade imbalances. Other countries (notably
Belgium and
> Italy) have run up total sovereign debts in the neighborhood of 130% GDP
without
> causing equally large trade deficits. The difference is that those
countries didn't
> have external bond buyers eager to manipulate their currencies.
>
> You have repeatedly demonstrated your antipathy toward the United States
here. You
> have also repeatedly demonstrated that your antipathy is impairing your
ability to
> think rationally. I have been gone from this section for quite a while and
in
> returning I see that nothing has changed on either score.
>
> Phil Payne wrote:
> >>Doesn't look like your wish is to come true any time soon.  Let's see,
US
> >>growth up, EU growth down.  Dollar stabilizing.
> >>
> >>http://www.iht.com/articles/2005/03/03/business/bux.html
> >
> >
> > Check Greenspan's views on the ability of growth to fund a deficit.
> >
> > The US dollar will be a Third World currency within ten years.  Like the
> > Bangladeshi taka - worth more as scrap paper than as currency.
> >
> > The dollar has dropped 45% against the Euro since I first commented on
this.
> >
> >

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