[DoughtyOne]

I don’t know what school of economics you went to, but when the dollar isn’t being purchased, what continues to happen to it’s value? Like it or not, the Euro is becoming more of a stable currency. It’s not losing value and Europe isn’t running trade deficits of up to a billion dollars per year, or running multiple trillion of dollars in deficit spending.

Put these together and you’d have to be sniffing glue to post what you did.

Foreign investments have been financing our house of cards. Without those investments, who will?

[Professional]

Your assuming that not purchasing the dollar is permanent. Ok, so at what point would you purchase a dollar denomination? Remember, a dollar not going abroad, as it would otherwise acts the same way.

I wouldn’t be dumb enough to claim I’m smarter than anyone about finance and econ, but since I do it professionally, have so for 15 years, and run a large practice, would say that I’m not a drug taking underwear wearing day trader that has just learned everything I know from Money Magazine. If you catch my drift?

[DB]

I think if you look the EU countries run higher budget deficits each year as a percentage of GDP than we do.

One of the primary reasons the Euro is so strong is their interest rates are much, much higher than ours.

[Roy Tucker]

I just wanted to correct one of your comments. You are absolutely right that Euroland is not running a trade deficit and in most years runs a surplus. However, the combined Euroland economies run budget deficits larger than the US budget deficit (and ours is coming down to around 2% of GDP. Euroland has a restriction of budget deficits of 3% of GDP but many countries are seriously in excess of that. Furthermore, our public debt/GDP figure is around 64% which puts us below most Euroland countries (about equal with France and Germany).