Posted on 11/24/2004 9:31:29 AM PST by soccer_linux_mozilla
LONDON (AP) - The U.S. dollar sank to another record low against the euro in European trading Wednesday morning. Gold prices rose.
The euro hit a record high of $1.3167 in morning trading, then eased to $1.3150, up from $1.3085 late Tuesday. The 12-nation European currency's previous peak was $1.3105 reached Tuesday.
The recent rally has taken the euro from $1.20 about two months ago, driven primarily by concerns over the U.S. trade and budget deficits.
(Excerpt) Read more at cnn.netscape.cnn.com ...
"Specie is the most perfect medium because it will preserve its own level; because, having intrinsic and universal value, it can never die in our hands, and it is the surest resource of reliance in time of war." --Thomas Jefferson to John Wayles Eppes, 1813. ME 13:430
"Paper is poverty,... it is only the ghost of money, and not money itself." --Thomas Jefferson to Edward Carrington, 1788. ME 7:36
"Experience has proved to us that a dollar of silver disappears for every dollar of paper emitted." --Thomas Jefferson to James Monroe, 1791. ME 8:208
"It is a [disputed] question, whether the circulation of paper, rather than of specie, is a good or an evil... I believe it to be one of those cases where mercantile clamor will bear down reason, until it is corrected by ruin." --Thomas Jefferson to John W. Eppes, 1813. ME 13:409
You can thank the Frogs for the end of our gold standard, Nixon was forced to close the "Gold Window"
hoooooly mackerel!!!
a founding father spoke and no one listened.
portentious?
There is nothing to back up Euros going high except for this being the new big thing.
Reminds me of the stock tech sector when perceptions drove stocks up to unrealistic highs.
When reality hit, it crashed and I expect the Euro to do the same.
The euro hasn't really been gaining that much. Everyone keeps saying NEW LOW against he Euro, but it hasn't really been gaining that much.
The euro has only risen 3.5 percent, the smallest in 3 years.
Congress needs to stop spending. It's really starting to piss me off..
I caught a sound bite on CNBC this morning on videotape wherein they were saying that they picked up a kind of interesting "take" on this situation from money managers / investors overseas. They were quite gleeful that the weak dollar was giving them an opportunity to buy US stocks at a discount.
The talking heads made the observation that many US companies were licking their chops over how many products (like I-Pods) they were going to be able to sell overseas during this Christmas season. Hahahaha
I think old Europe is going to fold up after the glamer of the Euro subsides a bit.
Reality will bite them in the butt when it hits.
glamer = glamor
That's funny. We ran trade deficits all the through the late 1990's and the dollar kept getting stronger.
It's the Euro Bubble.
I have a friend who works in the Belgium Bank system. He kept telling me we would do a business deal after "Kerry was elected, then the Euro will be more equivalent to the Dollar when you Americans throw out that Bush."
The problem with the strong Euro is that Germany's economy is doing horribly, and Italy and Greece have so much debt they are in danger of breaking the ceilings agreed upon by the EU. This is further compounded by the fact that Italy wants to give its citizens (get this) a TAX CUT! Horrors!
If that goes through, the rest of the EU will have a conniption fit. They know their citizens will demand the same tax cut in each country.
As Rush just said "...Greenspan isn't going to let things get out of hand... Yeah, they got some problems over in Europe (with the Euro), but that's over there - it isn't here. I got a note from a friend over in London today saying that a double cheeseburger at Wendy's is $12 bucks. That's their problem, not ours."
It's not the trade deficit that's the problem -- it's the "current account deficit," which is basically the combination of the trade and budget deficits.
Its basically a bad day for the Euros.
Yes, it was the French who bought US Gold Reserves and Nixon that took us off the Gold Standard coupled with the 1973 oil embargo that caused all the inflation in the 1970's.
Maybe if we change the name of the dollar to the Americo, we will have the same results?
Honestly, doesn't Euro just sound gay?
No, that's our problem. Either Rush is full of sh!t, or he hasn't told the full story here. Anyone in London who reports the price of a double cheeseburger in dollars is probably paying for it in U.S. currency -- which means the cost of this product has risen by about 35% or so over the last couple of years for him. This becomes our problem when transactions start being made without any consideration for U.S. currency value (the threat to trade oil on the global markets in euros instead of dollars is a good example of this).
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