Dollar dropping like a rock

[link|http://www.guardian.co.uk/business/story/0,3604,1353645,00.html|Guardian UK]

The dollar plunged to an all-time low against the euro yesterday as the Bush administration signalled it was not prepared to take any action to prevent the slide.

The greenback has resumed its fall since George Bush was re-elected and is down 40% against the euro over the past two years, reflecting growing concerns in currency markets over the giant US budget and current account deficits.

But US treasury secretary John Snow told the Royal Institute of International Affairs that his country's current account deficit was a problem for other nations as well and signalled his opposition to any kind of intervention to put a floor under the currency.

Snow is actually putting a good face on the situation. As far as I can tell, the dollar has reached the point where the US couldn't prop it no matter what it did. Europe and Japan may not be happy about the dollars drop, but they can't or won't spend their money to prop it up any more.

Everybody seems to be expecting the dollar to go even lower, but there is no agreement on just how low. I would be happy if the dollar floated between 1.2 and 1.3 for a couple of years. But it could be heading towards 1.5 Euro to the dollar, which would a disaster.

Jay

--\n-------------------------------------------------------------------\n* Jack Troughton jake at consultron.ca *\n* [link|http://consultron.ca|http://consultron.ca] [link|irc://irc.ecomstation.ca|irc://irc.ecomstation.ca] *\n* Kingston Ontario Canada [link|news://news.consultron.ca|news://news.consultron.ca] *\n-------------------------------------------------------------------

Post #184,468 by JayMehaffey 11/18/04 9:20:05 PM Reply	Dollar dropping like a rock [link\|http://www.guardian.co.uk/business/story/0,3604,1353645,00.html\|Guardian UK] The dollar plunged to an all-time low against the euro yesterday as the Bush administration signalled it was not prepared to take any action to prevent the slide. The greenback has resumed its fall since George Bush was re-elected and is down 40% against the euro over the past two years, reflecting growing concerns in currency markets over the giant US budget and current account deficits. But US treasury secretary John Snow told the Royal Institute of International Affairs that his country's current account deficit was a problem for other nations as well and signalled his opposition to any kind of intervention to put a floor under the currency. Snow is actually putting a good face on the situation. As far as I can tell, the dollar has reached the point where the US couldn't prop it no matter what it did. Europe and Japan may not be happy about the dollars drop, but they can't or won't spend their money to prop it up any more. Everybody seems to be expecting the dollar to go even lower, but there is no agreement on just how low. I would be happy if the dollar floated between 1.2 and 1.3 for a couple of years. But it could be heading towards 1.5 Euro to the dollar, which would a disaster. Jay
Post #184,480 by daemon 11/18/04 11:27:23 PM Reply	What we need to do now Is redeem a crap load of owes and doughs in dollars so they have to redeem it at the lower values. Help the trade imbalance regards, daemon that way too many Iraqis conceived of free society as little more than a mosh pit with grenades. ANDISHEH NOURAEE clearwater highschool marching band [link\|http://www.chstornadoband.org/\|http://www.chstornadoband.org/]
Post #184,486 by pwhysall 11/19/04 12:51:50 AM Reply	Cool At this rate, it’ll be more than a couple of dollars to the pound by the time I visit. I might buy Vermont :-) Peter [link\|http://www.debian.org\|Shill For Hire] [link\|http://www.kuro5hin.org\|There is no K5 Cabal] [link\|http://guildenstern.dyndns.org\|Home]
Post #184,493 by jake123 11/19/04 1:22:48 AM Reply	No, it sucks. The US dollar's slide is well on its way to destroying my business. --\n-------------------------------------------------------------------\n* Jack Troughton jake at consultron.ca \n [link\|http://consultron.ca\|http://consultron.ca] [link\|irc://irc.ecomstation.ca\|irc://irc.ecomstation.ca] \n Kingston Ontario Canada [link\|news://news.consultron.ca\|news://news.consultron.ca] *\n-------------------------------------------------------------------
Post #184,496 by pwhysall 11/19/04 1:25:14 AM Reply	That sucks. Peter [link\|http://www.debian.org\|Shill For Hire] [link\|http://www.kuro5hin.org\|There is no K5 Cabal] [link\|http://guildenstern.dyndns.org\|Home]
Post #184,497 by jake123 11/19/04 1:28:30 AM Reply	Tell me about it Bush had to win on my big month, precipitating the destruction of nearly 2K in profits. --\n-------------------------------------------------------------------\n* Jack Troughton jake at consultron.ca \n [link\|http://consultron.ca\|http://consultron.ca] [link\|irc://irc.ecomstation.ca\|irc://irc.ecomstation.ca] \n Kingston Ontario Canada [link\|news://news.consultron.ca\|news://news.consultron.ca] *\n-------------------------------------------------------------------
Post #184,660 by jbrabeck 11/21/04 12:16:28 AM Reply	Buy Texas instead And revoke Shrub's citizenship. A good friend will come and bail you out of jail ... but, a true friend will be sitting next to you saying, "Damn...that was fun!"
Post #184,804 by mmoffitt 11/22/04 1:07:19 PM Reply	Holy cow. We're losing ground to the Ruble? [link\|http://finance.yahoo.com/currency/convert?from=USD&to=RUB&amt=1&t=2y\|http://finance.yahoo...to=RUB&amt=1&t=2y] Looks like we're near a 2 year low against it. Sheesh. Never thought I'd live long enough to see the dollar fall against the Ruble. bcnu, Mikem Eine Leute. Eine Welt. Ein F\ufffdhrer. (Just trying to be accepted in the New America)
Post #184,881 by Arkadiy 11/23/04 2:27:43 PM Reply	Wow Ruble must be pegged to Euro. Hard to believe, but somebody in Moscow is playing smart for a change. -- This guy's ahead of his time! He's using quantum programming methods: in universes where invalid data is passed to this function, it does not return. Thus you are ensured that you will only have valid data after calling it. Optimally you'd destroy the universe on failure, but computers haven't quite advanced to that level yet. -- [link\|http://thedailywtf.com/archive/2004/10/26/2920.aspx\|The] Daily WTF
Post #184,884 by JayMehaffey 11/23/04 2:37:16 PM Reply	I don't think it's pegged I don't think it's pegged. But Russia has been diversifying it's holdings from Dollars to Euros to protect itself for some time. That also helps in their plan of increasing engagement with Europe at the expense of the US. Jay
Post #184,889 by Arkadiy 11/23/04 3:07:11 PM Reply	Pegged in the sence of "managed" Not "declared by fiat". -- This guy's ahead of his time! He's using quantum programming methods: in universes where invalid data is passed to this function, it does not return. Thus you are ensured that you will only have valid data after calling it. Optimally you'd destroy the universe on failure, but computers haven't quite advanced to that level yet. -- [link\|http://thedailywtf.com/archive/2004/10/26/2920.aspx\|The] Daily WTF
Post #185,706 by mmoffitt 12/1/04 12:37:49 PM Reply	Sheesh. Check out my link now. bcnu, Mikem Eine Leute. Eine Welt. Ein F\ufffdhrer. (Just trying to be accepted in the New America)

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