To: John Valentine
"Beyond that, there isn't any reason to think that the Euro's present relative strength against the dollar is anything but temporary. European monetary and fiscal policy is a shambles and getting worse. Within two years the Euro will be trading below 85 cents, anmd in ten years it will be nearing 50 cents."
Not so fast.
Britain will probably join (unfortunately). Don't forget, when the Irish chose no, they voted all over again.
Also, many countries are thinking of trading in Euros. The country I live in, Indonesia, is seriously contemplating this switch.
I hope I'm wrong.
Keep smiling,
Philip.
To: Jakarta ex-pat
The Euro is now probably at the highest exchange rate with the dollar it ever will be. We are in economic downturn and there largest economy is tanking, Germany. Not to mention 10% unemployment in many EU countries and virtually zero job growth in Europe for decades. I like our chances better than there's.
To: Jakarta ex-pat
If you are posting from Indonesia, you are staying up late.
Really, it makes little or no difference whether Indonesia denominates its debts in Rupiah, Dollars, Yen or Euros.
These are all paper transactions, and are dwarfed by the enormous quantity of money exchanged every day -1.2 TRILLION dollars. This dwarfs the daily trade in securities on all worldwide markets combined, and dwarfs by an even huger amount the total daily trade in oil.
By the way, I also have a home in Indonesia, but the press of my own economic requirements keeps me away too much of the year...
35 posted on
04/19/2003 2:07:59 PM PDT by
John Valentine
(Writing from downtown Seoul, keeping an eye on the hills to the north.)
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