Posted on 10/31/2007, 4:20:51 PM by Hydroshock
FRANKFURT, Germany - The dollar slumped to a new all-time low against the euro and the pound held at a 26-year high against the dollar Wednesday as markets awaited a likely cut in U.S. interest rates and mulled faster-than-expected U.S. economic growth in the third quarter.
The 13-nation euro hit $1.4467, its fourth new high in as many trading days, while the British pound traded as high as $2.0743, propelled by news Tuesday that U.S. consumer confidence had ebbed to its lowest in two years.
The euro settled back to $1.4449 in afternoon European trading _ still just above the 1.4434 it bought in New York late Tuesday _ after new U.S. data showed the economy growing at a 3.9 percent pace in the third quarter, the fastest pace in 1 1/2 years.
(Excerpt) Read more at cnbc.com ...
Economy/Credit/Housing Issues Ping List
If you want on or off this list let me know.
well it looks like I’m going to have to cut back on british porn, german music, and polish video games *sigh*.
Looks like the $US actually reached a new low against the $EU. The $CA is also moving, and even more.
Ron Paul has a strong dollar riff, but that is in the context of gold standard kookery.
The wife and kids and I go to Sanibel Island for Thanksgiving every year. It’s the slowest tourism week of the year and usually hotels and gift shop stuff is discounted. Busch Gardens is almost empty.
This year they are charging premium rates because of over booking by Germans pouring in because of the cheap dollar.
I’ve been trying to educate myself on world economics lately and was wondering what this really means.
The lower interest rate and dollar value, as the article says, will encourage foreign bond holders to move their investments elsewhere, which in english means that the foreign investors that have bought up our debt and hence keep our government’s head above water will cash out and seek better deals. So what happens if too many of them cash out?
In other news, 3.9% GDP growth, exports growing at the fastest rate ever, stock markets hitting all time highs, interest rates are low, job growth was much higher than expected.....we are all gonna die!!!!!!!!!!!!!!!
The more the Fed cuts, the farther the dollar falls, and the higher oil prices go. Even though supplies gasoline and heating oil supplies were up, the price of oil hit a new high this morning, running up over $2. It’s a vicious circle and the US consumer gets it in the neck on all sides.
The oil inventory report this morning was a real eye-opener. The oil companies are importing less oil, thus creating a “short fall” in inventories. The result is a price hike, a sweet deal for the speculators and greedy oil companies and our enemies in the Mid-East.
Somehow I suspect that you already have the answer to that one - hehe!
Sacre bleu! Wouldn't you know it! Just when I was contemplating heading to Bordeaux for some Chateau Mouton and Brie...
Guess I'll have to settle for some Old No. 7 and a bag of pork rinds.
We go to Disney (Orlando) every year during the second week of November because it is normally their slowest time of they year and the lest expensive - well, for Disney that is.
We booked this year back in June and many of the hotels were already sold out and no Florida resident rates were available. The reservation agent said that the Europeans and South Americans were back in full force.
The politicians and the MSM are doing their best in keeping this off the radar screen, but this is really bad news.
Forget all the nonsense you see on the talking heads TV shows and some of the amateur economists here on FR, and all of the arcane crap about “this will make our goods more competitive” and “it will reduce our overseas debt obligations” and all their other drivel.
This is already starting to hurt average Americans and it will get a lot worse. You are paying $94 a barrel on oil because the sellers want a lot more of these cheap dollars than the old strong dollar. What you are seeing going on among the financial houses and power brokers is a lot of behind the scenes maneuvering to get their best financial returns in their pocket before the great leveling begins.
You have been warned, but don’t expect to see it on national TV.
The politicians and the MSM are doing their best in keeping this off the radar screen, but this is really bad news.
Forget all the nonsense you see on the talking heads TV shows and some of the amateur economists here on FR, and all of the arcane crap about “this will make our goods more competitive” and “it will reduce our overseas debt obligations” and all their other drivel.
This is already starting to hurt average Americans and it will get a lot worse. You are paying $94 a barrel on oil because the sellers want a lot more of these cheap dollars than the old strong dollar. What you are seeing going on among the financial houses and power brokers is a lot of behind the scenes maneuvering to get their best financial returns in their pocket before the great leveling begins.
You have been warned, but don’t expect to see it on national TV.
I know.
Not completely. The price of oil has gone up a lot faster than the value of the dollar has gone down.
Considering all the other good economic news - low unemployment, better than expected GDP, low interest rates, etc. - why is this bad for the US. US products will be cheaper in Europe and Canada? There will be fewer Mercedes bought in the US and more Cadillacs bought in Europe. Unless on travels to Europe, Americans will never know the difference.
Can anyone tell me why the Euro is so strong? It doesn’t make sense to me. Europe has high unemployment, a huge tax burden, and a stagnant economy. Furthermore, the Euro is spread across multiple countries, all of which supposedly control the currency across different economies. That doesn’t seem like the right recipe for a strong currency.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.