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Post by LHR02 on Feb 7, 2005 17:48:16 GMT -5
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Post by me on Feb 17, 2005 23:15:47 GMT -5
sorry not to have gotten back to you sooner, Ging.
i wouldn't count on the $'s slide stopping until some fundamentals change. US's current account deficit is the problem.
our economy is doing much better than € zone's. so, we're buying much more stuff from them than vice versa. as a result, more US$'s are chasing fewer €'s. the law of supply & demand means that the €'s value will go up.
the irony is that this makes US good's cheaper for € holders, so the few things they do buy are American, which doesn't help the € zone economy.
normally, an export driven econmy (like Germany, but Japan is also in the doldrums) works better than this. but, such a big trans-atlantic/trans-pacific economic imbalance has thrown a spanner in the works.
China's cash should also be shooting up, but the Gov there has kept it pegged to the US$ by buying lots of US Gov bonds. this makes our federal gov's deficit seem pain free, which isn't too good, imo. [the Fed holding the interest rate so low for so long may cause big problems in the long run]
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Post by me on Sept 19, 2005 0:24:08 GMT -5
the German election's lack of finality <memories of Florida in 2000 are flashing through my head> has caused a new dip in the Euro.
don't know how long this will last, though.
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