Wednesday, November 17, 2004
Dollar in Sight of All-Time Low v Euro
First the deficit, then the dollar, what next? Dollar in Sight of All - Time Low Vs Euro: "The U.S. currency skidded to an all-time low of around $1.3045 per euro in New York trade on Wednesday. Against the Japanese unit, it plunged to around 103.80 yen a level not seen since the beginning of April. [. . .] The euro and the yen have gained nearly seven percent against the dollar since October. Underlining its weakness, the dollar was at 83.31 on the trade-weighted index, a nine-year low."
If the dollar gets much lower, something the NYT's article thinks is unlikely only because the Japanese and the EU will step in to protect the Yen and Euro, investors that are funding Georgie's tax cuts will start looking elsewhere to invest their money. Now the Japanese and EU may step in, but currency markets are fickle and there is no telling what the markets will do if Georgie, DeLay, and Big Daddy Cheney push through another round of tax cuts to keep our "strong economy" strong. Once Georgie et al pile on some more pork and well...that Bush "strong economy" won't be looking so strong to the world's investors.
First the deficit, then the dollar, what next? Dollar in Sight of All - Time Low Vs Euro: "The U.S. currency skidded to an all-time low of around $1.3045 per euro in New York trade on Wednesday. Against the Japanese unit, it plunged to around 103.80 yen a level not seen since the beginning of April. [. . .] The euro and the yen have gained nearly seven percent against the dollar since October. Underlining its weakness, the dollar was at 83.31 on the trade-weighted index, a nine-year low."
If the dollar gets much lower, something the NYT's article thinks is unlikely only because the Japanese and the EU will step in to protect the Yen and Euro, investors that are funding Georgie's tax cuts will start looking elsewhere to invest their money. Now the Japanese and EU may step in, but currency markets are fickle and there is no telling what the markets will do if Georgie, DeLay, and Big Daddy Cheney push through another round of tax cuts to keep our "strong economy" strong. Once Georgie et al pile on some more pork and well...that Bush "strong economy" won't be looking so strong to the world's investors.