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 ...
The Euro is not increasing in value. Check its rates against any other significant world currency - the pound, the yen, the Australian dollar - its pretty much steady. Compare the US dollar against all of those and you'll find an across the board drop for the dollar.
I think that is more an international effort against our WOT.
Hellifiknow, but Nixon canned the standard becasue they in particular were cleaning out Ft. Knox...
Check out the following thread on this topic from a while back, particularly Post #69. We had a very interesting discussion about the subject of oil prices, currency valuation, etc.:
1973 U.S. Threat to Seize Oilfields
I'd be interested in getting your take on this, but my suspicion has always been that the 1973 "embargo" was nothing more than a deliberate attempt by the U.S. government to cover up a deliberate effort to devalue the U.S. dollar.
Sorry to bother Pete but I read a report that china is selling the dollar short.....is this part of that event in your opinion ?
Not necessarily. It makes imports from Europe to the US expensive, hence cutting consumption of European goods.
It makes US goods in Europe cheaper and therefore more competitive. That increases consumption of American goods overseas.
It increase tourism to the US from Europe and cuts US tourism to Europe.
If GWB leads us into a financial disaster (and I believe he is capable), that should convince foreigners to not be net investors in the US.
I have not read that but if they are going short against the dollar they are betting that the dollar will continue to fall. Not Good.
I have always thought the Gold Speculators were all Doom & Gloom and Wrong. They may be on to something.
Ever since the inception of OPEC in 1960 the Saudis having investments in the US have wanted to keep the oil flowing and at a low price. They want to make money on both ends and are smart enough to know that if the US economy crashes that not only will their investments in the US crash but that the demand and price of oil will fall. Worst Case Scenario for the Saudis.
In 1973 the Radical States of OPEC such as Libya and Iran pushed first for a production cut and then embargo. The Saudis resisted until Nixon gave 2 or 3 billion in military aid to Israel. The Saudis were pissed.
But yes, OPEC had always talked about an embargo but never could agree. Nixon may have set them up to save his own butt.
Since I joined the service in 72 I have bought an ounce of gold every month . Mostly Eagles, Maple leafs and pandas with some krugerands when I could get em. My Grandfather always said guns, gold and groceries are all that count.
Stay safe !
I hope you sold on 1979 or 80.
Nope........I messed up. Was statione in Korea then. BTW I pinged ya to the China sells short thread.......
Stay safe !
However, it is a good lesson in economics.
Schools need to teach Political Science and Economics in the same package. You cannot understand one without understanding the other.
We were triplets born in the same caldrun.
Hello Coryoth. I am too tired to try to go at it again. Keep up the good fight. I'll reenter the battle as soon as I can. Ring the warning bell.
US companies are raking in billions per month now...probably twice as much as 2002...strictly because of the exchange rate. The Europeans are in fit though because of this. They had no problem with .9 or even the mid .8 level...but they are losing alot of business sales to the US now...strictly because of the rate change. The one positive is that oil is sold by the dollar...so they can buy ton's of dollars at a much better rate...and gas prices in France and Germany really haven't gone up much in the past six months because of that.
The real fear here is that the dollar will slide down in the .6 range. The US economy would be booming but it would spell disaster for European finance. And no one knows where the US government will halt the decline.
Are the exports really going up? I haven't noticed a lower price of U.S. made products in the stores. Can't imagine people are buying more. Of course a holiday in the U.S. would be a bargain now.
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