Posted on 12/23/2004 8:52:20 PM PST by woofie
Hervé Gaymard, France's new finance minister, on Thursday warned of a global "economic catastrophe" if the US, Europe and Asia did not work together to stem the decline of the dollar against the Euro.
As the dollar reached new lows against the European currency, Mr Gaymard voiced the strongest criticism yet from a European finance minister of the dollar's decline, saying it was "absolutely essential" that the US understood the need for "co-ordinated management at the world level" at the next G7 finance ministers meeting in February.
"If we stay as we are, with no co-ordination, one can imagine a catastrophic economic situation at the global level," he said.
However, as the "strong dollar" policy espoused by John Snow, US Treasury secretary, is nothing more than a laisser faire "markets-know-best" approach, most in the currency market believe Mr Gaymard's appeal would fall on deaf ears.
"His outburst is regarded as toothless. Co-ordinated intervention strikes the market as off the radar screen at the moment," said Mark Cliffe, chief economist at ING Financial Markets.
Mr Gaymard, who took over the portfolio only three weeks ago, was speaking on a visit to a General Motors factory in Strasbourg. His comments, part of an answer to a question for a local businessman, reflect wider concerns that Washington's refusal to stem the dollar's decline could hurt European competitiveness.
The dollar is set to record a third straight year of losses for the first time since 1987, when the world's leading nations signed the Louvre Accord to bring stability to exchange rates.
French concern over the dollar reflects worries about export and growth prospects as the country struggles to meet its eurozone obligation to keep its budget deficit below 3 per cent of gross domestic product.
In spite of calls from politicians for intervention in foreign exchange markets, Jean-Claude Trichet, president of the European Central Bank, has not gone further than saying recent currency moves are "unwelcome".
On Thursday, the US dollar fell to a record low, reaching $1.3502 against the euro before easing back to $1.3488.
Additional reporting by Ralph Atkins in Frankfurt
This Frenchie knows that the cost of a trip to Paris has gone way up, as well as the price of frog whines and cheeses.
Tell them to start buying dollars and maybe we will buy some cheese NOT!!!
No skin off our teeth -- or not much, at least. It's like a built in tariff. It only hurts those who want to sell their products here. If the rats won't stop buying French wines, maybe this will help 'em do the right thing.
Until the French expressed concern, I was worried about this.
Anyone who buys French products should be hanged for treason.
The French are learning is it not a smart move to stab Americans in the back --- or kiss Islamanazi ass...
There are MANY ways to punish the French, and punish we will.
Semper Fi
I have a feeling that Bush is giving some sort of payback to Europe. He is talking a strong dollar game but doing nothing. I haven't figured the angle yet.
If the French are running amok, it must be the right thing to do! They sure do like telling other people what to do, don't they!! They run around the world telling countries how to vote in the UN, they tell us tha our Foreign Policy is wrong, they hate our President, they hate the fact we believe in Jesus Christ, they hate us because we reject Homosexuals (Exploding Groins). They go to England and tell the PM he's all f'd up, But the one thing they will NOT do and that is MIND THERE OWN DAMN BUSINESS!!
Well sacrificing to help European competitiveness is on my list.
Not in the top 100 or top 500 of my list, but on my list… somewhere…
that's right and since the Chinese monetary system is tied to the US dollar it is Europe that gets screwed the most. I'm so very sad...............boo hoo
I hope the dollar falls so low that the French have to eat pidgeon droppings, the smellie surrender monkeys.
grrrrr, I have got myself pissed thinking about france and the arrogant attitude of its leaders. At one time there was a movement to remove our heroes from their tainted soil and return them to their rightful homees. I wonder if that is still a possibility. No way should our loved ones rest on their piss sodden ground,
Gerorge and John Snow - do what you have to!
There is a storm coming. God rest ye merry islamist, democrats, and France.
"Global" economic catastrophe?
How about "European" economic catastrophe.
The over-valued Euro has not only made Europe too expensive for Americans and the rest of the World, it has also made Europe too expensive for the Europeans themselves.
We went to Spain last summer and a Spaniard was telling me that prices in Spain sky-rocketed when the Euro replaced the Peseta. She called the Euro an "engaño".......a hoodwinking.........perpetrated upon Spain by European Union politicians.
Last week, I met a visiting woman from the Netherlands. I asked her opinion about the Euro, told her about my conversation with the Spaniard and asked what the effect of the Euro was in the Netherlands.
She replied that it had the same effect that I had described for Spain. She say that, before the Euro, the dollar was worth about 2 Dutch Guilders. However, once the Euro took over, everything that was previously priced at 1 Guilder in the Netherlands was then priced at 1 Euro. As a result, the cost of living in the Netherlands doubled.
She says it is now so bad that the Dutch tend to stay home rather than even go a restaurant or to a pub as they are now so expensive.
The high cost of living is also affecting the number of children that young European married couples believe thay can afford.
The over-valued Euro is destroying the European economy and is seriously affecting European society.
And so has the cost of an Airbus.
tell the frogs to shut up.
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