George Washington
--and the fact that this hasn't happened in over two centuries is proof of how very farsighted Washington was.
Posted on 04/26/2008 2:13:55 AM PDT by dennisw
LLS
I agree that the free market will correct itself, but if the politicians in Washington had the wit and benevolence to eliminate the capital gains, inheritance, and corporate taxes and start extracting and refining domestic oil, the U.S. economy would leave Europe’s and Asia’s behind in the dust.
In absolute terms the 4 cent drop may not be much, but to people playing the currency markets it’s undoubtedly a huge move - some folks made a bundle and some folks lost their shirts. To the rest of us, the sun still came up this morning and not much has changed.
The question is if the euro starts to plummet vs. dollar, where will the Chinese and Arabs put their money? Do they buy more US treasuries? Do they buy hard assets (companies, real estate) in the US? I am not at all sure with the way things are looking for the US economy they will do that. We are at the beginning of a global contagion with paper currency. Those with excess cash may rather invest in hard assets of some sort, but the key is what?
“Paper money will…ruin commerce, oppress the honest and open the door to every species of fraud and injustice.”
George Washington
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
Ludwig Von Mises
When the Euro gets below $1.30, it might be called a dive.
--and the fact that this hasn't happened in over two centuries is proof of how very farsighted Washington was.
"The wheels are coming off the eurozone economy," he said.THATS the funniest thing i've read today... 8^)
sounds like a tagline.
“The euro has suffered its sharpest drop in four years “
Keep it going.
I want to travel Europe on a strong dollar..
Ping
When the US stops buying and flying, the world goes down. The multinational traders on Wall St., who have been selling the story that there is a “decoupling” of the world economy from ours, are wrong again. Example: The global food shortage resulted from the US changing its grain surplus into fuel, thanks to Bill Clinton, Algore and the Dems in Congress in the ‘90s.. When we screw up, the world suffers.
Remember, they do things differently than we do and attempt to get ahead of the curve.
They never succeed of course, but that's what they try to do.
In France they sought to spread unemployment with a 36 hour week that prohibited overtime, even for lawyers!
Didn't work.
But, our best bet is to let the Europeans play. Their alternative "plan" is almost always a bit of looting on a major scale ~ you know, like Spain invades France, France invades, Belgium, Sweden nukes Prague ~ on and on.
“Anglo-Saxon world to Europe”
England is killing Europe??
Those were my first thoughts, too. I'll be in Italy and Greece the end of August and was just thinking about buying Euros for the trip. Think I'll wait a while.
Actually recently Soros made comments that seemed he has switched from long euro to long the dollar when the euro was about 1.58.
Thanks for the ping.
Take her to Quebec!
All the arrogance of real Frenchmen without all that frou-frou- culture BS!
Even before the Euro was implemented there were many who questioned the possibility of maintaining a unified monetary policy with such vastly divergent economies. What they seem to have forgotten is that the US has over 200 years of unifying of the economies of the states to make attempting it even possible, and we don’t always get it right.
Even when all of Europe has a slowdown it’s not likely that the same actions will work for all the nations, or that the recoveries will happen at the same rate.
Since this is California, it probably understates trade changes going to Europe, but it does show a definite change in the flow of goods.
Thanks much....
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