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Originally Posted by TheMaster
remember a couple of months after the launch of the euro, the euro was down 33%, pitty I wasn't making any real money back then
keep hearing people say the dollar is going to 50% of the euro, anyone think this might happen?
what will happen to the dollar, when the Bank of Japan increases the buying euros instead of dollars?
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The dollar is (or was a few months ago) 40% down over the Euro since 2001 ish. Sure, no doubts it will end up 50% of the Euro - it's only a matter of time.
Prob the main "threat" to the dollar is the billions held by the Central Bank of China. China has already been "subtley" dumping dollars and has recent declared they want to dump a lot more if the value cannot be sustained.
The core problem is internal in that there is no fiscal policy of any substance, a constant deficit in balance of payments and only two areas where there are trade surpluses - wheat and arms. At the same time there is constant daily borrowings from other nations - $2-4 bill daily from the Central Bank of China alone. The US is living beyond it's means and is not sustainable - and will show in currency exchange.