U.S. foreign debt

[Rakesh Bhandari]

Doug,
As far as I can tell, the US has the opposite problem of Southeast
Asia--too much confidence, so the dollar has risen due to the mad entry
into the US assets market and thus endangered US exports. Greenspan's
marginally higher interest rates, Summers inaction on the falling dollar,
Microsoft Prez's recent comments are all measures aimed at cooling the US
stock market down  before it implodes. I would expect
that after the Asian pseudo recovery dissipates and Germany's political
instability continues, speculation on Wall Street will pick up
again--though the current account deficit will continue to grow largely
because stagnation abroad spells no substantial growth in US exports.  US
capital has to fight against wild estimations of its relative strength.
The twin dangers are an even greater Wall Street bubble being pierced and
thus  bringing the world economy down through the wealth effect and US
exporters collapsing due to a rising dollar. 

I have no economics knowledge. Just going on what I read in the
newspapers. I appreciate your expert commentary (Barkley's note on
exchange rate determination was quite helpful as well). 

It just seems to me that the problem is the exact opposite of a mass
dumping of US assets. Again esp. after the mini recovery in Japan and Asia
is over. 

Yours, Rakesh