Euro Rises Above $1.33 As Dollar Slides

[3days]

BERLIN (AP) - The U.S. dollar's slide against the euro kept up its momentum Friday, with the European currency rising above US$1.33 for the first time.

It was the fourth day in a row on which the dollar hit a new all-time low against the euro, which rose to US$1.3329 in early trading before dipping back under US$1.33. On Thursday, the euro topped US$1.32 for the first time, trading at US$1.3248.

The current dollar slide, driven primarily by concerns over the U.S. trade and budget deficits, has taken the euro from around US$1.20 about two months ago - prompting European leaders to begin worrying openly that it might damage their export-driven economic recovery.

http://apnews.myway.com/article/20041126/D86JI6AG0.html

And how did OBL say he was going to defeat America?
I think it was by ruining the economy.
Good job chimp...you're really kickin his ass.

[Dez]

1. I wonder how low it will have to fall

before all who voted for him, take notice?

[phantom power]

4. They'll notice when it shows up in the price of all the stuff we import

Whether or not anybody connects their vote with the economy is another question entirely.

[The Zanti Regent]

9. No they won't

They are too brainwashed by TV Preachers.

[Cobalt Violet]

18. No it will be blamed on Liberals hating America.

Everything will be.

[Carolab]

28. Oh STOP it

playing the victim, I mean. Your FEAR is disgusting. Shut up. Liberals have NOTHING to do with this.

[Chicago Democrat]

23. A LOT MORE.. 99.9% of ordinary Americans don't care as long

as their wages increase more than inflation.

Its going to go 1.40 by January 1

[indepat]

2. A shirking economy, jobs market, and value of the dollar are small prices

to pay to be led by a man who follows God's will and will keep us safe.

[AllyCat]

14. please tell me I have missed your joke...n/t

[Maeve]

3. The change I brought back from Ireland is beginning...

To look like an investment! :eyes:

[Occulus]

5. I told my mom about this two days ago

About the dollar's slide, Grover's "starve the beast" strategy, gold prices, and so on... she has almost $400K in various investments and accounts.

Her response?

"You read too much."

!!!!!

[TahitiNut]

8. Ignorance is bliss ... and it's abundance is rapturous.

Too many seek a vegtative state.

[truth2power]

6. Would there be any advantage

to the Chimp Administration if the dollar collapses? I'm not talking about what it would mean to us peasants, but to Bush and his cronies.

It seems like they aren't too worried about this state of affairs. Just wondering if it's to their benefit in some arcane way.

Thanks to anyone who can explain this.

[Astarho]

11. When we sell everything, they buy it

Bush's "Ownership Society" in action.

[cliss]

12. Answer = yes.

The Bushies want this. They want the dollar to be in free-fall. They want it to go down to historic lows, and they are keeping their hands off of it in international currency markets.

We are in A LOT of trouble with our imports. We import WAY too much. The Doctors in Washington feel that if we make imports much more expensive, then we won't import so much. Our balance of trade will improve. In addition, we'll get to export a lot more since our stuff suddenly became cheaper. Guess who benefits? American Corporations.

They're smiling right now, as we speak. As the rest of the world bites its nails, they're shaking each others' hands.

Now, they don't want the dollar to collapse. That would cause worldwide chaos. They just want to bring it so close to death that final rites are prepared. They're holding onto their lucky rabbit's foot that things get better after that.

Now in case this seems strange to you, you're not alone. Most people don't understand Bush and his cronies. They are GAMBLERS. They are high-stakes, blow-on-the-dice, gamble the mortgage money to win it all type of people. There is not a prudent bone in their body. They have no allegiance to anyone, so they are free to shake the cosmic dice with the world at stake.

This is what other countries don't understand. As they sit on the sidelines and tremble with fear, they laugh as their finger hovers over the button.

[truth2power]

13. But....but...

We have very little to export, anymore. Manufacturing has gone down the tubes. Practically everything we buy is manufactured offshore; shoes, clothing, appliances, electronics, and on and on.

Many of these items are necessities. I don't buy much in terms of shoes and clothing - just the bare necessities. But I have to have something to wear. So, how do they figure we're going to ramp up our shoe manufacturing industry - just to take one example?

Our manufacturing facilities are being outsourced. What they're doing will make IMports more expensive. Those who've lost their jobs because of outsourcing can't buy the cheap stuff being imported now. How are they going to make it when shoes, clothing etc. is even MORE expensive??


My head is spinning...seems like this can only come to a very bad end! :crazy:

[Chicago Democrat]

26. Cheap dollar reverses that trend... Yes we do so make things...

Cars
Computers Assembled (but we don't make the parts)
Genetically Modified food, Construction materials,

Letsee what else?

Medical Equipment, Medical Technology
Big Airplanes
Guns
Tanks
Bombs
Predator Drones
Spy tech
Sattelite tech

So the world will buy that stuff when it gets cheap enough....

BUT!

The inputs we import will get more expensive and we will see an uptick in interest rates, inflation etc.. When that becomes untenable, the US will stop the free fall.

MEANWHILE...


Remember the world holds 5 Trillion or whatever in US debts... If the Dollar declines another 50% vs other currencies that means we get to pay them back in DEVALUED DOLLARS the face value.

[Wunderkind]

24. Well, sort of

I think you're definitely right that Bush et al aren't doing much to stop the dollar from falling, and you're also right that they won't continue to let it fall once it reaches dangerously low levels.

But, at least in theory, this should help struggling U.S. manufacturers sells more products overseas since our goods will be relatively cheaper. This could lead to more hiring. Of course it means higher prices here for consumers as well. Nothing is free.

The major reason they're letting this happen, though, is that a weak dollar is actually the best way to close the trade deficit. Our current account deficit with other countries has to be balanced by a capital account surplus, i.e. getting other countries to invest in U.S. assets. With a large and growing current account deficit the U.S. could have trouble sustaining an adequate level of capital account surplus, which could be more disastrous than simply living with a weak dollar while our trade deficit closes.

[sarahlee]

21. Fullfills the original Reagan plan

Remember - think it was David Stockman, who said the plan was to bankrupt the government so they could get rid of all those "socialist programs." Certainly not a direct or accurate quote, but that was the jist of if.

They believe in corporate feudalism.

[jsquared]

34. This administration has a simplistic view of the world which believes that

lower dollar means higher exports (according to their talking poitns from the Chamber of Commerce and Natl Assoc. of Manufacturer.. What they totally don't realize is that before we get to the higher exports part, foreign buyers at Treasury auctions (who account for almost half of current salles) will stop showing up, due to a depreciating asset. At that point, interest rates will rise sharply, creating all sorts of problems for the economy, housing prices, etc. The dollar may really fall off the cliff if there is a crisis of confidence.

[Pab Sungenis]

7. It's more interesting to track the Canadian Dollar!

The Canadian Dollar has not traded at, near, or over par with the U.S. Dollar since the hyperinflation days of the 1970's. It's usually around US$.75.

Today the Canadian Dollar is at $.85 according to http://www.xe.com/ and their universal currency converter. It wasn't projected to get anywhere near that rate until late 2005 at the earliest, and if the US dollar continues to slide, we could actually be looking at the Canadian Dollar being at or over par with the US dollar again.

A boon for NAFTA people, but trouble for the rest of us.

[Bozita]

10. Canadian license plates spotted in abundance at malls

I'm in a border city. Haven't seen this many of our neighbors in quite some time.

The plates are a pretty accurate barometer of the exchange rate.

[AllyCat]

15. And don't forget the WTO announcement today...

...they have sided with the EU and Japan about the illegality of the Byrd Amendment. These two countries will impose sanctions on the U.S. unless we get rid of this amendment by the start of the year. NYT article link below. And NPR reported it today on the 10:00 news.

http://tinyurl.com/69bxs

[vinny9698]

16. And the bush people wonder why they are supported by the EU

They are screwing up the EU economy by letting the dollar slide and running up huge trade and budget deficits. Then they have the nerve to ask for help.

[vinny9698]

17. I meant NOT SUPPORTED BY THE EU

[JanMichael]

19. IIRC $1.35 or $1.40 was supposed to (Or might) trigger some rather...

...ugly ripple effects.

I forget what though...Was it that foreign governments would begin dumping the Dollar and/or US Treasury Bonds en masse?

Anyone familiar with the DU conversations a few months back on this subject?

[proud patriot]

20. Yes

and Russia made a hint last week that the time is near .
http://money.cnn.com/2004/11/23/markets/euro.reut/

I really resent bushco for putting the American people in such
a vulnerable position . Of course the multi nationals are happy
as can be about it .

The sad thing about being correct here , is I was warning
people about this 2 years ago ...

I feel like Cassandra must of felt :-(

[Javaman]

22. 1.40 the official deep shit level

[Wunderkind]

25. The EU

Would probably conduct a currency intervention before it got that bad.

[JanMichael]

27. Can they counter balance China & our inept leadership?

Or a better question...Would they bother?

[bhikkhu]

29. Economics Question:

I know that a substantial portion of the value of the dollar is based upon its standing as a reserve currency, and its current erosion the result of a loss of that standing as a reliable reserve. A part of the devaluation is that European exports become more expensive, and so the fragile European recovery may be jeapordized.

BUT, if the Euro assumes the place of the dollar as a world reserve currency, are there benefits to the European economy to offset the losses of some export markets?

[VegasWolf]

30. That is true, but the EU commissioners may not feel that they have

any choices, and they are taking premptive action (awols
favorite word ) to stem their losses as the chineese are doing.

[bhikkhu]

31. Preemptive action being dollar-dumping...

that is a given. I am more concerned as to whether this will inevitably result in a European Decline, macro-economically speaking.

[VegasWolf]

32. I doubt it, their economy is slowly recovering, 60% of their imports

are electronics, certainly not coming from here. They
could actually do something as the European Union if
they play their cards right and come out better off.
The only really important player in the world now is china,
they are numero uno. Good while it lasted for the US.

[depakid]

33. Osama wins by keeping Republicans in charge

They're sure to collapse the economy and undermine America's influence in the world.

The more I think about it- the more I'm coming to respect the man's intelligence. Scary thought, that.