Biting The Hands That Fund You

We rely on Europe?Old and New?to finance our private companies and … our government … the United States’ biggest exports today aren’t movies or software programs. They’re paper products?stocks, bonds, and other securities. The Europeans are among the biggest purchasers of these goods. But recent data and recent currency market action … suggest our erstwhile continental friends may not be buying what we’re selling … In 2002, Europe accounted for nearly two-thirds of net corporate stock sales and 60 percent of net corporate bond sales … the decline of the dollar against the euro is a logical outcome of our policies. Winking at a weak dollar surely doesn’t encourage foreign investors to jump in. Why buy something today when you think it’ll be worth less tomorrow? Our interest rates remain remarkably low … It’s obvious to European investors that they can get higher rates of return on government debt in stable economies elsewhere.