[July 4th]

We would go back to having holidays in Florida because it was cheaper than Spain.

And so would we. At €1.25, flights to Europe will be empty.

[Michael81Dus]

Germanys economy will suffer from a weak Dollar, when one Euro costs more than 1.20 US$. Personally, I had no problems with a weak Dollar, cause that means cheaper trips to the US (already planning my next trip to Hawaii, SF and LA). :-)

Well, let´s wait and see. I don´t believe these so-called experts: they told us last year that the Dollar would cost 1 € at the end of the last year - and in fact it came in July/August. So, their predictions aren´t so great.

Hopefully, Schröders coalition will end in the middle of this year (heavy resistance for his reform proposals within the coalition), then there´s hope that we won´t suffer from a depression.

[AntiGuv]

For whatever reason, this article fails to address the impact to the dollar's status as international transaction & reserve currency standard or to the "safe haven" status of U.S. stocks, bonds, and real estate. I will make this categorical prediction right now: if the dollar were to fall to €1.25 or beyond, U.S. demand will not continue rising faster than European & Japanese demand....

[fightinJAG]

Thank you. This is what I don't get about France and Germany: they (especially France) want to knock us down a notch, counter our power, which is an amalgation of military and economic might, BUT their whole economy is intertwined with ours. In fact, in many ways the number one influence on their economy is the U.S. economy.

So, HELLO.

[AntiGuv]

BTW, I just realized this article appears to have a curious error worth noting. A $1.25 euro would mean that the dollar had fallen to the €0.80 level, or beyond.. The other valuation statements should be modified accordingly...

[Greeklawyer]

this article is anti-USA even more than it is anti dollar. Remember France and Germany were activly trying to use Iraq to replace the US dollar as the currency that oil is priced with the euro. Right now if you want to buy oil, its priced in dollars. The real question should be who really controls the euro?

[George W. Bush]

Here's the heavy payback for the Weasels. And a "carrot" to keep Blair looking toward the U.S. while keeping Europe less eager for Britain to adopt the Euro. Notice that this will not hit New Europe as hard and will also make trade with us and under the aegis of U.S. economic/military power more attractive. Oh, yeah, and U.S. armaments will naturally become more attractive to our New European allies as well.

This reminds me once again of just how deep and thorough American foreign policy planning has been in the last year. Despite the initial failure at the U.N., it's very thorough in its economic, military, and diplomatic aspects. It's astonishing.

It's the Total Package, baby!

[Dark Wing]

ping

[WhaChuLookinAt]

In a rational world they would move in much narrower bands and we would create ways of resisting their wilder fluctuations. But we do not live in a rational world/

In a world dominated by free market economies, "rational" would be the apt description. But when a few exercise much power, as they do in ALL major economic powers in existence, there is no rationality - just reaction, deeply flawed forecasting, and poor planning, with an eye toward maintaining that power.

[FreedomCalls]

What about these dollars:

Or at a minimum these (read the seal on the left and the inscription at the bottom center of the front):