From: Randall Parker 

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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