Posted on 11/21/2006 1:03:05 PM PST by GodGunsGuts
Fed's Fisher said welcomes bigger role for euro
BERLIN, Nov 20 (Reuters) - Federal Reserve Bank of Dallas President Richard Fisher said on Monday he expected the international role of the euro to grow in time, but stressed he did not expect this to be at the expense of the dollar.
"I don't spend my time worrying about the central banks dumping dollars and replacing them with euros," he said during an audience question-and-answer session after addressing the American Academy Berlin Economic Policy Forum.
"I expect the euro to play a greater role than before as a reserve currency. I would hope that the euro will play an increasingly popular role," said Fisher, not a voting member of the Fed's policy-setting committee this year.
Even the FED knows there is major currency diversification on the horizon.
Wrong again, Toddler.
I wonder if Airbus will ever sell their planes for Euros as well as dollars?
The budget deficit is already dropping. And why do you double count the trade deficit when you warn about the dollar? Unless you're too dumb to realize you're double counting?
Even the FED knows there is major currency diversification on the horizon.Who will fund our deficits!?
This is expected. Three currencies, yen, euro, dollar (in whatever form it takes). This is the Fed's way of paving the way because it is a done deal...long ago.
There is overlap, but they are not the same Toddler. Apparently it is YOU who are too dumb to realize it.
Either higher taxes or massive cuts in spending. It all depends on what happens two years from now.
I made fun of the Euro. I won't be surprised if the Euro disappears by 2016.
"I don't spend my time worrying about the central banks dumping dollars and replacing them with euros,"
He must already have all the gold he needs.
The Toadster is wrong about everything. Don't listen to anything from him.
Free markets = Free people. A beautiful thing.
Preach it brother!
Do you hold stock in Wal-Mart?! Who else wants to save the Dollar?
Saving the Dollar means that imports cost less. That's it.
If you want a strong Dollar then by default you want more imports. You want Americans buying foreign goods instead of U.S. goods.
In contrast, if the Dollar falls, that makes foreign goods more expensive...so Americans will purchase/import fewer foreign goods.
The Dollar should be buried. Chopped, cut, sliced, diced, and ground into the dirt. Make the Dollar fall and U.S. exports will have lower prices for our foreign buyers. That means the U.S. will make and sell more U.S. products and services.
Do me a favor, I know math isn't your strong suit, (LOL!!) but why don't you list the parts that make up the current account deficit and show everyone how much the non-trade deficit portion of the current account deficit is?
You know, so we can see if the trade portion is around 90%, (that would be a large portion) or around 10% (that would be a small portion). So we can see if it's a large overlap, in which case, you're double counting a lot. Or see if it's a small overlap, in which case, you're double counting just a bit.
I can understand if you don't get any actual numbers, math is hard for goldbugs.
Hey, it's my second favorite economic illiterate. How've ya been, hub?
Flat tax sounds great!
and then abolish the Fed.
Who would manage the money supply?
You're forgetting about what will happen if our major trading partners start dumping their dollars. Also, I don't think you realize the privileges we will be giving up if the world stops looking at the USD as the reserve currency of choice. Not to mention what will happen to the world if the USA looses its economic (and thus geopolitical) leadership role.
Well, give credit where due. Euro notes are not the same size, but the larger the denomination, the larger the note. Also, they are color coded. Both are convenience features, especially the former - for the people with poor eyesight, or blind. This we could probably incorporate in the dollar notes, too.
Nobody... We can use GOLD!
No. I'm not forgetting it; I'm demanding it.
The Dollar falls. That means that China sells fewer goods to the U.S.
Anyone who wants the reverse is advocating anti-U.S. behavior. That's why Europe and Asia are hoarding Dollars...to artificially prop up our currency so that the U.S. buys more and more imports.
Given this fiscal management nightmare, the idea of using the Euro as a reserve currency is risky. It may very well be the currency is shaken by some countries - like Italy - being bounced out of it.
No, the dollar will be the major reserve currency for some time to come.
Regards, Ivan
An idea which he is completely incapable of grasping.
Ahhhhhhhhhh...a voice of common sense. :-)
Regards, Ivan
Sadly, FR has a rather vocal and overextended group of doom&gloom prats. :-(
Regards, Ivan
Exactly so and yes, I most certainly do. LOL
Don't hold you breath for a response from Gigi. Expat and I have been waiting for him to explain the difference between the current account deficit and the trade deficit for several days now. We're also waiting for his opinion on the capital account surplus and the balance of payments. It will be interesting (and probably entertaining) to get the goldbug point of view on these things.
So, in other words they don't stack well in your wallet. I keep all the cash in my wallet sorted. Having different sized notes would be a pain in the butt.
I wonder if they've tried that in the Netherlands?
I assume you have a good eyesight. Please accept my envious congratulations.
Don't tell Gigi, he needs the dollar to crash to boost his heavily margined gold position to $1650 an ounce.
You must not have lots of experience trying to stack pieces of paper that are different sizes. Try working with old well logs that are all different sizes. It is quite convenient to have currency that is all one size regardless of denomination. By your criteria, checks should all be different sizes depending on the amount you write them for.
The goldbug websites that provide Gigi's info probably don't bother to explain what the current account deficit even is. Otherwise they wouldn't double count. Gigi would need to do some extra research. It would just prove his previous error. So he'll never admit to it.
He just gets tired of being proven wrong. Constantly.
Dead wrong. Once I write a check, I part with it, and do not keep it. And I would see the different sizes as a convenience, when, say, I receive the change at a cash register. It would make my life easier, and counting the money quicker.
To date, the only action the Dept. of the Treasury has taken in response to these recommendations is to place a large denomination numeral in the lower right-hand corner on the reverse side of most recently printed banknotes. The exception is the $1 bill, which was not altered when this feature was added to other bills. This is a small step, which is helpful to some people, and would seem to indicate that the department recognizes their obligation to address the issue of accessibility.
In the meantime, over 120 other countries around the world have taken much larger steps to insure that their paper currency is readily identifiable by people with visual impairments. These countries have incorporated into their banknotes some of the same accessibility features recommended by the National Academy of Sciences study. Canadian banknotes, for example, have large, high contrast numerals, and a dominant color which varies by denomination. The Canadian Journeys series of banknotes also goes even further by incorporating a tactile feature which allows people who are blind to identify specific denominations by touching a series of small raised dots located in the upper right-hand corner on the face of the notes. The dots are arranged differently for each denomination of notes. Both British notes and Euro notes vary in size by denomination and make use of high contrast numerals. All of these countries implemented these changes within a relatively short time, from the decision to do so, to the implementation, and the results have been accepted by their citizens without great difficulty.
http://www.rit.edu/~easi/itd/itdv09n1/brunson.htm
While another country is looking to diversify out of the Euro........altogether.
Weak Italian economy could prompt Rome to quit euro, bank says
Italy accounts for 16% of the EU's total GDP and they're looking to quit the Euro entirely. Do you think that move, when it happens, will create more confidence or less confidence in the Euro?
Besides, would you rather buy US debt paying 4.6% or ECB debt paying 2.25%? Would you rather invest in the EU, mired in high unemployment and anemic GDP growth, or in the U.S which is the global leader in innovation and serves as the locomotive for the world economy?
I, for one, will let the economy confirm my point of view. Your mocking will diminish with each passing day as the economy increasingly withholds the wiggle room you and your fellow Pied Pipers need to keep people from waking up to your phony (and fatal) optimism. In the meantime, it's an eye for an eye until such time as we can call a truce and treat each other like fellow human being again.
I already know what your response is going to be, so bring it on!
Debating? You give yourself wayyy too much credit. When we post facts and you post feelings, that's not a debate.
Like I said TODDLER (and that's really the way I see you)...your response was predictable. You should really dig deep and find the courage to crawl out of your self imposed box. There's a large world out there to explore. And given your ingrained responses, I would imagine you don't have a heck of a lot of time to get started.
Fatal optimism? As opposed to your pity posse?
I don't have a pity posse...we think for ourselves. But you are right, those who NATURALLY agree with me all pity you.
Yeah, why am I optimistic when you've been right about so much? I'll stay on the optimistic side with Ronald Reagan. You keep crying with Willie Green and ex-Texan and the rest of the crybabies.
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