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Euro Hits 2-Year High Against Dollar
Associated Press ^
| 20 June 2002
| DAVID McHUGH
Posted on 06/20/2002 11:22:14 AM PDT by Asmodeus
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1
posted on
06/20/2002 11:22:14 AM PDT
by
Asmodeus
To: Asmodeus
Buy American --- if you can still find anything made in America
To: Asmodeus
The Euro will be "about a dollar" until one of two things happens. Either some Eurozone country won't live up to the fiscal responsibility agreement, or one pulls out due to "tax harmonization".
3
posted on
06/20/2002 11:35:32 AM PDT
by
Salman
To: Salman
The upward drift of the Euro seems to have begun when the French and German currencies where phased out a few months ago. Could the Euro's strength be derived from the strength of the former Deutschmark? One strong economy could drag the rest along.
To: RightWhale
Many software websites in europe sell their products as
one dollar equals one euro.
I think european technocrats want a 1 to 1 ratio.
To: Salman
"The Euro will be "about a dollar" until one of two things happens. Either some Eurozone country won't live up to the fiscal responsibility agreement, or one pulls out due to "tax harmonization"."
What struck me when I first read about the 3% deficit rule is that in would incentive each country to increase deficits and employ accounting tricks to hide higher deficits since it would advantage them over the others. Could learn a lot from the Americans. ;)
Anyway, the years when our deficit spending was protected from inflation by dollars being absorbed in the world economy are coming to an end, I think.
6
posted on
06/20/2002 11:51:43 AM PDT
by
Shermy
To: Greeklawyer
When the Canadian dollar was within 10% of the $US, sometimes higher, sometimes lower, they were accepted in neighboring states as equal, especially in stores. Once they drifted apart enough, many merchants in the US stopped accepting Canadian money at all. The $EU is probably close enough to the $US that it doesn't matter which is used right now.
8
posted on
06/20/2002 11:57:42 AM PDT
by
the
To: Asmodeus
The rally was motivated more by doubts about the dollar than conviction about the strength of the euro and the economies of the 12 countries that use it, he said.Nuff said.
9
posted on
06/20/2002 12:21:48 PM PDT
by
Gaston
To: Asmodeus
Your fast track to trade deficits at work. Another deficit record set last month. Sorry, Buchanan, we should have listened to you on the economy. (also on immigration and foreign entanglements).
10
posted on
06/20/2002 1:52:49 PM PDT
by
ex-snook
To: the
Note that the bottom of the graph is 1.00 not zero. A more honest zero based graph would show a less dramatic fluctuation.
11
posted on
06/20/2002 2:24:02 PM PDT
by
Salman
To: RightWhale
The upward drift of the Euro seems to have begun when the French and German currencies where phased out a few months ago. Could the Euro's strength be derived from the strength of the former Deutschmark? One strong economy could drag the rest along. Absolutely. The Euro is Deutschemark lite. In effect, the Deutschemark was slightly inflated and the Eurozone adopted it. A fiscal mess up by (for example) Italy, or the admission to EU membership for political reasons of (for example) Poland could devalue it.
A more likely scenario for the Euro devaluation is some major member pulling out over economic regulations not directly related to the currency. Like Brussels trying to dictate the composition of German sausages or French wines. Hell, they even regulate stuff like the shape of bananas, but that doesn't directly impact one member over another.
12
posted on
06/20/2002 2:33:57 PM PDT
by
Salman
To: Lexington Green
Buy American --- if you can still find anything made in AmericaAlternatively, you could behave as a free man and a rational consumer, buying the quality you desire at the best price, thereby insuring that American industry is subjected to the benefit of competition, and that capital, labor and other resources will tend to be used where they are most productive and therefore competitive, thus raising the wages of American workers, and the returns of American investors, and the standard of living of American consumers.
Of course even if you do your little bit as an individual to lock resources into less productive enterprise by irrational "buy American" descisions, you can at least rest assured that you won't do as much damage to our economy as our own President has done with his recent lumber and steel tarrifs (alas).
13
posted on
06/20/2002 3:54:58 PM PDT
by
Stultis
To: Salman
I guess that central bank lending rates are set (and money supply managed) by EU people in Brussels? How does that work? Seems like it might work fine as long as things are good, but if any of the major countries were disproportionately affected by a recession, there could be trouble. Were they at least smart enough to let the Bundesbank people take over the central banking, or did they let the French (or, God forbid, the Italians) do it?
14
posted on
06/20/2002 4:08:00 PM PDT
by
walden
To: Lexington Green; Stultis
Buy American --- if you can still find anything made in America. A weak dollar helps American manufacturers that export their products. Chew on that for a while . . . .
15
posted on
06/20/2002 5:09:12 PM PDT
by
1rudeboy
To: Asmodeus
The euro is managed by there own european version of the FED, which is , to put it nicely, incompetent. I think the french actually have a lot of say, and considering the fact that the country is in permanent recession and happy about it. The Union is going to have alot of problems.
16
posted on
06/20/2002 5:40:10 PM PDT
by
Sonny M
To: Asmodeus
The euro rose to its highest level against the dollar in more than two years ThursdayThanks Alan Greenspan.
To: walden
I guess that central bank lending rates are set (and money supply managed) by EU people in Brussels? How does that work? Essentially, it's all from HQ in Brussels, but that doesn't mean it's a all the Belgians. It's mostly French an Germans, with input from all the others.
Seems like it might work fine as long as things are good, but if any of the major countries were disproportionately affected by a recession, there could be trouble.
Precisely.
They are least smart enough to let the Bundesbank people take over the central banking, or did they let the French (or, God forbid, the Italians) do it?
I truly do hope so. But I don't trust the Bundesbank in the long run.
18
posted on
06/20/2002 8:25:13 PM PDT
by
Salman
To: 1rudeboy; Salman
Here is a graph covering the last four years that I generated at
this site. While we may be at the two year low for the U.S. Dollar versus the euro, we are still quite a way from the four year low.
19
posted on
06/20/2002 8:58:02 PM PDT
by
the
To: Salman
I think that the "euro" european central banking is being done from Frankfurt am Main.
20
posted on
06/20/2002 8:59:14 PM PDT
by
the
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