[T. P. Pole]

The dollar tumbled to 115.13 yen from 115.90 on Friday.

115.13 to 115.9 is a tumble?

[headsonpikes]

Let paper chase paper; buy gold.

[Destro]

So if the dollar deflates, what does that mean to the purchasing power of the dollar? difference with inflation is?

[BlueNgold]

Does anyone that maybe knows more than me about this particular subject think this is a lot of 'Henny Penny'?

[sourcery]

FYI

[Ford Fairlane]

now i know why the market tanked today

[MD_Willington_1976]

Here's one that really sucks...Barf Barf Yack....

Monday, May 19, 2003
1 US Dollar = 0.86333 Euro
1 Euro (EUR) = 1.15830 US Dollar (USD)

This one particularly sucks for me since I pay for my student loans with real money (US$$ = real money)..

Monday, May 19, 2003
1 US Dollar = 1.37000 Canadian Dollar
1 Canadian Dollar (CAD) = 0.72993 US Dollar (USD)

[snopercod]

"What the United States has made clear is that they are not going to undertake any efforts to try to defend the currency..."

I've never really understood that kind of hubris. What can the feds really do to "defend the currency"?

[AmericaUnited]

But "in Europe, it has the opposite effect," he added.

Gee, that's too bad we happen to be screwing the Eurotrash... or should I say "putting the economic thumbscrews" on them.

[longtermmemmory]

the euro was made to knock down the dollar. Why else would people be dumping dollars?

[gettheUSoutoftheUN]

its all coming apart

[InterceptPoint]

Question for you smart guys: Isn't the rise of the Euro against the dollar more or less a result of record low interest rates in this country?

Money market accounts are now paying .95% versus 4-5% historically. Assuming that Euro based interest rates on the equivalent deposits are higher then it just makes sense that people would trade dollars for Euros and put the Euros in a bank or equivalent money market account at the higher rate. That would put selling pressure on the dollar and it would fall. That is what has been happening.

Tell me it's more complicated than this.

[A. Pole]

A "strong dollar" policy did not mean that the currency should be at any particular exchange rate, he said, emphasising that it incorporated other values such as confidence, or being a good medium of exchange.

Free market bump?

[motor_racer]

Today the de facto money standard is oil. The dirty secret of the dollar is that, since oil has been exclusively priced in dollars for many years, the wealth of all the theives of the middle east has had to pass through the dollar.

The emergence of the Euro makes it possible for OPEC to consider pricing oil in another currency or (even worse) against a basket of currencies. If oil were priced in a combination of dollars, yen, and euros, OPEC would control the exchange rates, and the economies, of the world.

As a result, the rest of the world would need far fewer dollars (to support oil purchases), with the excess dollars flooding back to the US as they become useless overseas.

The dollar, and the economy, and the governments behind the notion of fiat money, all collapse like a house of cards.

What do you think would happen next?