Shalom All:

Worldwide effects of sinking dollar
http://www.csmonitor.com/2004/1122/p01s01-usec.htm
----clips----
The good news for Americans: It's getting easier for manufacturers to sell
products overseas, and more likely that tourists from Germany will flock to
US National Parks.

But the downside could be significant. America, the world's leading importer
of goods, is now buying them at higher prices. And if the dollar's dive makes
foreign investors wary, US interest rates may have to rise to attract buyers
of federal debt.

The dollar is now down 50 percent against the euro since October 2000, and hit
a its lowest level since 1995 against a basket of foreign currencies last
week.

China, another key engine of the world economy, also faces new pressures.

If investors in bond markets see rising interest rates ahead to stem a dollar
decline, prices of bonds could plunge.

But to Thea Lea, an economist with the AFL-CIO, the dollar is "egregiously
overvalued," thereby hurting exports and American workers.

Lawrence Kudlow, a Wall Street economist, says the real problem with the
dollar is that "Old Europe has the monetary story wrong." The European
Central Bank isn't creating enough new euros to stimulate the economy.
---end clips---

Dianne
<*}}}><
http://home.centurytel.net/grafted-promise/endtimeline.html