Quote:
Originally posted by VirtuMike
I just checked and the currency exchanges for USD are at record lows.
1 EUR = $1.32
1 CAD = $.85
I read yesterday that they were expecting the Euro to continue to rise. How does this affect you?
European goods consumed in the US will be replaced by American goods out of sheer pricing. US goods exported throughout the world should increase.
But then again, these are all made up numbers and values.
From what I understand, the Republican agenda is to knock us back into the depression of the 20's, where the only way to get us out is to depend on loans and production. There is money generated on the down cycle (look at all the government contractors banking on this time period), and once we're so desperately in the hole, we will need to depend on them once again to loan us out of the hole. It's actually a pretty brilliant strategy - if you're on the winning end. If you're just another taxpayer, you get burned twice.
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Makes me laugh when Bush says he wants a strong dollar - A n interest rate hike of 2% would bring it back a bit -
But, what he is doing is quite clever - In the short term (See my final paragraph) - Already Usa import/export differentials is 50Billion dollars waywards - All those extra taxes collected on exported goods will help offset usa borrowing -
As for all those countries thinking about exchanging the dollar as a second currency... Well shove your dollars back into the usa.
If huge ammounts of outside cash are now invested into American equities, futures and stocks, those doing so will make, as you'd expect, normal profits - But imagine what would happen should the dollar get back 10, 20, 30, or evn 40% of its former value, and those investors sold off everything?