Europe asks Asia to help with Euro/Dollar(fun)

BBC ^ | Jan 25th, 2005 | BBC

[eluminate]

European leaders say Asian states must let their currencies rise against the US dollar to ease pressure on the euro.

Tacit approval from the White House for the weaker greenback, which could help counteract huge deficits, has helped trigger the move.

But now Europe says the euro has had enough, and Asia must now share some of the burden.

China is seen as the main culprit, with exports soaring up 35% in 2004 partly on the back of a currency pegged to the dollar.

"Asia should engage in greater currency flexibility," said French finance minister Herve Gaymard, after a meeting with his German counterpart Hans Eichel.

[eluminate]

This is slightly hillarious...

The opening paragraph was a bit much.

[seppel]

Let EU bleed. Go USA!
(from Germany)

[CasearianDaoist]

It's just wonderful. I actually think this is all just a byproduct, that it was not really the intent of the FED or the Administration at all. They just need to slowly walk rates back up rather than push things. It is just gravy. But it is jolly good fun to watch.

Can you imagine the screaming a little down the road if bush actually gets real tax, tort and regulatory reform, and the American economy start booming again like it is 1955 all over again.

You know, the ECB could lower their rates if tey wanted to? Why not? what's that you say? I cannot hear you guys overthere across the pond? And if the EUro gets down to .85 against the dollar in 20 months and stays there then they will start bitching about "tax normalization."

Too funny.

[Earthdweller]

Let's all dance the Euro Bump!!!

China, here is your invitation to "Dance"..signed Chirac, Schroeder, Putin (The European Union "Core group")

[seppel]

EU is structurally not in a position to cope with US which is reformed according to Bush platform. The only thing between a EU which is bleeding against a reformed US economy are the Dems.

EU is structurally tied up. If they were to reform the EU economies to cope with US performance, then the social and hence political structures unravel, and per definition people will become more nationalistic and the EU unravels.

The EU lives off socialist nanny states because these are bureaucratic and the EU is a bureaucracy state. The critical mass of populace will leave the bureaucrats to their games if they give them food and shelter, otherwise the game is up.

[CasearianDaoist]

Well I maintain that if we get real reform - and I mean real reform, no bandaids - and we also address some issues in Science and Technology policy, funding and eduacation, and, of course, address education as a whole, that we would soon see 5% or more GDP growth a year as a standard.

I am not holding my breath, and I realize that it will take more than 4 years to do it, but were it to happen it would change everything.

[BlueLancer]

[Earthdweller]

I take that as a barf..hehe.

[expatpat]

The critical mass of populace will leave the bureaucrats to their games if they give them food and shelter, otherwise the game is up.

Yes, indeed. Which reminds me that the latest cuts in NKorea food rations may be the final straw there.

[expatpat]

European leaders say Asian states [i.e., China] must let their currencies rise against the US dollar to ease pressure on the euro

And who's army is going to make them?

[JeffersonRepublic.com]

"And who's army is going to make them?"

hahaha! Too funny.

EU: "It's the Americans fault. No wait! it's the Asians fault. Yeah thats right it the Asians. Oh no, now it's the Americans fault again."

Maybe the EU should look in the mirror because their currency is rising out of control against the worlds currency, not just the U.S. dollar.