>>It's quite possible that the value of the dollar is currently too high given the level of US power. But we can't know for sure.
Jim << By many measures, it is easy argue that the dollar is undervalued against the euro and the yen, enabling the US to export deflation to those economies. OTOH, if you believe the value of a currency (even the dollar, which is no ordinary currency) is a function of things like trade deficits, the dollar should be cheaper than it is. But then European and E. Asian investment in the US then finances the trade deficits by parking money in the US even as these investments lose money in the US because the dollar declines. C Jannuzi __________________________________________________ Do you Yahoo!? Yahoo! Web Hosting - Let the expert host your site http://webhosting.yahoo.com
