Posted on 11/30/2006 1:20:40 PM PST by Ernest_at_the_Beach
NEW YORK (MarketWatch) -- The dollar tumbled against major currencies Thursday, hitting a 14-year low against the British pound and a fresh 20-month low versus the euro, after the latest round of economic news fueled concerns the U.S. economy is headed for a sharp slowdown.
(Excerpt) Read more at marketwatch.com ...
The Democrats get elected and the dollar tanks....
interest rate cuts are coming in a hurry.
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NASDAQ CLOSES NOVEMBER WITH 2.7% GAIN; DOW AND S&P RISE 1.2% AND 1.6%
The U.S. currency has been under fire over the past week,
on growing worries that the Federal Reserve will lower its interest rates to spur economic growth,
while the European Central Bank and the Bank of England will continue to lift rates to curb inflationary pressures.
Actually, if you want to increase the value of the dollar in relation to the Euro (for example), you raise, not lower, interest rates.
If the Fed cuts rates as people are starting to expect early in 2007, what you'll see is a continuation of the slide of the dollar vs. the Euro.
the dollar slide is fine with me - something must be done to force the chinese to float their currency, China is sucking in massive amounts of US capital investments for real industries - manufacturing, semiconductors, technology of all kinds, auto manufacturing, information systems, etc - while the US builds new Starbucks and Applebees.
we must do something about China. if the cost of Mercedes and Porsches rise - so what. Let them build plants in the US to produce the cars they sell here.
The dollar lost something like ONE percent and this is a slide?
We have a new helicopter factory under construction.
Good, where are you?
that's what you think.
It's not going to happen.
In fact interest rates may rise if those that are now threatening decide to curtail their treasuries purchases.
Don't hold your breath.
Lurking'
Yeah that was a big fricken slide! That was 1% TODAY!
About 10% since January of this year.
Lurking'
Well at least it ought to bring the Limeys over here in droves as touristas looking for the great US "garage sale" on everything in sight!!! Then we'll really git pounded!!!
This was all predicted. Now let's see what the brilliant chess moves the democraps will try to push through as things begin to get a bit dicy. My prediction is that they will fold up into a fetal position.
The Fed Chairman has already commented. He says no.
America produces more efficiently. The same item produced in the USA for a buck costs $1.95 in UK and $1.32 anywhere in the EU.
Buy American!! Good quality at a more efficient, lower price.
Got extra Sterling to invest? Put it in the U.S. market. U.S. companies make everything more efficiently, therfore, cheaper. Earn a better return on investment.
Like safe returns? Buy U'S. Treasuries, backed by the full faith and credit of the US taxpayer and about 1% higher interest rate than faltering euro economies.
yitbos
Brush up on your French, German and English because they are coming to the see the Zoo called America...
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