I don't believe the dollar is ridiculously overvalued. A parity with the EURO seems to be quite right. it has been fluctuating between about 10% higher and almost 50% lower the last thirty years, but then the general agreement was it was greatly underrated.
Jan ----- Original Message ----- From: pete <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Tuesday, October 22, 2002 8:32 PM Subject: RE: FW: Global jitters amidst brinksmanship > > On Tue, 22 Oct 2002, Harry Pollard <[EMAIL PROTECTED]> wrote: > > >All an exchange rate does is compare the worthiness of one country with > >other countries. So, supported by the brilliance of modern economists, > >politicians meddle with the exchange rate to "improve" their look. > > > >It's rather like warming a room by holding a match under the thermostat. > > > >Perhaps exchange rates should be allowed to float free. > > > >Then politicians might become acquainted with real life. > > > > Harry, unless you know something I don't (far from impossible), I > believe the US dollar does float free. It is the unwarranted > confidence in it by (financial industry) currency speculators that > keeps it ridiculously overvalued while the US trade deficit continues > to mount. It seems to me the dollar is riding a bubble long after > the market bubble has popped. > -Pete Vincent >
