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To: SUSSA
They attribute the weak dollar/strong euro to "persisting worries about the health of the US economy." However, any first year economics student will tell you that the reason the dollar goes down vis a vis the euro is that the US is running a trade deficit, and the reason the US is running a trade deficit is that the US economy is strong relative to the European economy--not weak. When the US economy is strong, consumers spend more money and buy more imported goods, while the weaker European economy does not enable European consumers to reciprocate.
13 posted on 12/17/2003 3:58:23 AM PST by Brilliant
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To: Brilliant
the US economy is strong relative to the European economy--not weak. When the US economy is strong, consumers spend more money and buy more imported goods,

The US economy is NOT!!! strong.

The fact that americans are buying lots of chinese goods means that the economies of red china, india, korea, etc are strong.

It is India and red china where all the new factories, new offices, and all the jobs are. The Asian economy is booming, not the United STates. We may be spending a lot, but that does not make us "strong". Spending and producing are two different things.

A country, or even a family, that produces nothing, has no job, but spends a lot, and increases its debt by a trillion dollars each year, is not healthy nor "strong" financially.

18 posted on 12/17/2003 6:06:38 AM PST by waterstraat
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