Weekly column: Weak dollar, big deficits, and technology firms

[Declan McCullagh <declan () well com>]

http://news.com.com/2010-1028-5151278.html

The shrinking currency of technology
February 2, 2004, 4:00 AM PT
By Declan McCullagh

For the moment, U.S. technology companies have reason to celebrate a dollar 
that has been declining gradually but steadily in value.

Between January and December 2003, the dollar fell 20 percent against the 
euro. Thanks to the sliding greenback, Amazon reported a jump in quarterly 
revenue last week that helped make 2003 the company's first profitable year 
ever. Microsoft, IBM and Cisco Systems have also recently attributed 
increased sales to the weaker dollar.

But what about the longer-term effects?

For a glimpse, look to Washington, D.C., where President Bush on Monday 
will release his proposed budget for the federal government's 2005 fiscal 
year. It's expected to project a record deficit of $521 billion, up from 
$375 billion for 2004.

...

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