Euro almost at it's introductory value vs the Dollar!

[Giancarlo]

Originally posted by paiktis22
Eurozone: the place of choice for smart investors.

Maybe in Spain and Italy, but certainly not Germany or France right now.

[DanS]

Of course, there are others who feel that the United States is no longer able to interfere with Europe's advance. One person who subscribes to this view is Tatsuya Kubo, Manager of the Global Investment Management Department at SG Yamaichi Asset Management. He says, "A strong Europe is a threat to the United States and having been unable to prevent this, the US is trying to build up its authority in Asia. As far as I can see from America's policies on Asia, the US position is informed by the idea that if it can engineer a situation of economic crisis then it should be able to take over the reins of leadership politically as well." Mr. Kubo argues that the United States takes the same approach in its dealings with Japan. "The US is constantly calling for lower taxes and more government bond issues, and would be only too happy if Japan's budget deficit swelled to large enough proportions to cripple the Japanese economy."

The weak Japanese economy is the US' fault now?

Re currency swings, they happen. Nothing to worry about, unless the swings happen very quickly. Most companies with sales greater than about $100 million use currency derivatives anyway, to shield their businesses against these swings.

[BeBMan]

Originally posted by DanS
The weak Japanese economy is the US' fault now?

Come on, everything is US´ fault

[Kropotkin]

I thought everything was Chirac's fault. Oh well (some of us) learn something new every day.

[Spiffor]

I have to second Fez on this one.

In this time of economic slowdown for many European economies including the 2 bigs of the Euro zone (France and Germany), things would be better off with a weak Euro, so that the competitivity of these economies doesn't tank further.

The ECB could take this opportunity to release some of the pressure put on the several member states who are having trouble with the stability pact, and could also use this opportunity to stop its fundamentalism against inflation.

But I don't hold my breath on this one : the ECB has shown its deep stubornness

[Giancarlo]

And this is the last thing Spain needs too! A strong Euro. It is starting to bring up prices. The ECB better cut interest rates, and better do it now.

[Flandrien]

Originally posted by el freako
If the Dollar goes as undervalued relative to the Euro by as much as it was overvalued at it's peak, then we will see €1=$1.48

If that ever would be true, I would certainly spend my next holiday in the US.

[Dinner]

Fears about terrorism and war have pushed the dollar down against all of the major currencies. Hopefully, now that Iraq is pretty much over we can get back to the business of making money.

[Kidlicious]

A weak dollar doesn't really hurt the US, because the dollar remains the key currency. For the dollar to lose it's status the expectations for the US economy would have to fall while the expectations for the European economy would have to improve. A currency can not become a key currency just by its strength alone.

edit: also I don't think there are enough Euros for it to be a key currency, but I'm not sure about that.

[TCO]

Originally posted by Azazel
GP: 2:yes but it keeps people buying and selling currency, doesn't it?

It induces governments to waste money and to hurt their economies for Cheney-size silliness.

[OneFootInTheGrave]

There is about the same number of Euros as there is Americans at the moment.. .and there will be more after the expansion to the east, but that expansion will most likely bring short-term to medium term economic instability and that will not bode well for us Euros I would think, but still this is a first time that such a large market that is comparable to US exists, and it is a first time that Euro is going strong for longer period of time in the new situation... well you never know maybe there will be a change in balance, probably not yet but maybe in the future..

UK and Sweden are not in the Eurozone yet... but if they come I think the number of people and size of the market will outstrip US...

Of course if UK joins Nafta than all the plans of Euro domination fall into water

[Kidlicious]

Originally posted by OneFootInTheGrave
There is about the same number of Euros as there is Americans at the moment

I meant to say that there may not be enough Euro money the moment, but the population expansion of the EU will be a factor too.

It depends on the economies involved.

Too bad for the US if it happens. It would crush our economy, and the whole world would suffer.

edit: changed dollars to money

[TCO]

Originally posted by OneFootInTheGrave
There is about the same number of Euros as there is Americans at the moment.. .and there will be more after the expansion to the east, but that expansion will most likely bring short-term to medium term economic instability and that will not bode well for us Euros I would think, but still this is a first time that such a large market that is comparable to US exists, and it is a first time that Euro is going strong for longer period of time in the new situation... well you never know maybe there will be a change in balance, probably not yet but maybe in the future..

UK and Sweden are not in the Eurozone yet... but if they come I think the number of people and size of the market will outstrip US...

Of course if UK joins Nafta than all the plans of Euro domination fall into water

Why? Why not have trade liberalization all across the board? Why all this mercantile silliness?

[TCO]

Originally posted by Kidicious


Too bad for the US if it happens. It would crush our economy, and the whole world would suffer.

How so?

[Kidlicious]

Originally posted by GP


How so?

The value of the Dollar would collapse. There would be a massive shift in resources, and it would take a long time for the efficiency to recover. A global depression would either coincide or follow the collapse of the Dollar.