DMS dmschanoes at earthlink.net
Tue Jul 1 09:43:05 MDT 2003

Today's hard copy Financial Times (web access by paid sub only)
has an article where the Bank for International Settlements
calls the Bush tax cuts "not helpful" to the global economy
(like Bush cares).

Further into the article the BIS offers a different
analysis of the US current and capital account deficits and
the risks of deflation:

           [The BIS Report states] The Japanese
           asset bubble of the 1980s was fuelled
           by Japanese money but the US bubble of
           the late 1990s was financed by funds
           from abroad.

           As a result the deflationary threat was
           more serious in countries...in the euro-
           zone than in the US...

           "Should the dollar fall further...it is
           the creditors who would this time bear a
           double burden of adjustment."

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