"The dollar jumped to a six-month high against the euro Friday as investors speculated whether the European Central Bank could begin cutting interest rates and the head of the Federal Reserve failed to hint at immediate action to support U.S. markets."
Why is this happening Jermyn? Give the logical reason?
Isn't it because of the bailouts of Greece and the other socialistic nations? The germans are getting ready to bail out!
Alls that is happening is that the investors in the eruo are bailing because of the euro tanking. They were getting into swiss francs but now that is intentionally being stopped by the swiss government.
So the option right now is the dollar.
It has nothing to do with Obama, it has everything to do with the euro tanking.
The euro has weakened 3.8 percent against the dollar since Sept. 2, on course for its biggest weekly decline in more than a year. The yield on the two-year German note dropped to as low as 0.377 percent, with the 10-year bund yield sliding as low as 1.77 percent, the lowest on record for both.
Greek two-year note yields added as much as 203 basis points to 57.08 percent, a euro-era record. Credit-default swaps insuring Greek sovereign bonds jumped 701 basis points to a record 3,727, according to CMA. The five-year contracts signal there’s a 94 percent probability the country won’t meet its debt commitments. One-year Greek note yields jumped 325 basis points to a record 97.96 percent.
in an economic downturn it is not a foregone conclusion that a rising dollar is a good thing. The stronger the dollar, the weaker u. s. exports are.
The less we can export, the worse the hit on the economy.
A strong dollar is great when the economy is gangbusters because it gives us buying power, but there is a trade off.
International buying power (strong dollar) means export jobs in OTHER COUNTRIES.
Beyond that strong/weak money comes from more than one source. It can come from external pressures (like an unstable situaion in the EuroZone) or it can come from internal pressures (like the rising inflation driven by expanding the money supply).
Further, measuring the dollar vs. one other currency does not paint a complete picture. you have to take a lot of factors into consideration.
What is the dollar doing against the Pound Sterling? What about the KIWI? What about the Canadian Dollar?
What about the dollar against precious medals and other commodities?
Measuring the USD against the EUR and claiming victory is akin to deciding how good the Detroit Lions are by watching a Oakland Raider game when the Greenbay Packers are winning the Superbowl.
__________________ If I do something stupid blame the Lortab!
Jd has to stand with Obama, some brothas have to stick together ! Other Brothas like Charles Barkley and Bill Cosby tell it like is ,Terrible Terrible Terrible !
in an economic downturn it is not a foregone conclusion that a rising dollar is a good thing. The stronger the dollar, the weaker u. s. exports are.
The less we can export, the worse the hit on the economy.
A strong dollar is great when the economy is gangbusters because it gives us buying power, but there is a trade off.
International buying power (strong dollar) means export jobs in OTHER COUNTRIES.
Beyond that strong/weak money comes from more than one source. It can come from external pressures (like an unstable situaion in the EuroZone) or it can come from internal pressures (like the rising inflation driven by expanding the money supply).
Further, measuring the dollar vs. one other currency does not paint a complete picture. you have to take a lot of factors into consideration.
What is the dollar doing against the Pound Sterling? What about the KIWI? What about the Canadian Dollar?
What about the dollar against precious medals and other commodities?
Measuring the USD against the EUR and claiming victory is akin to deciding how good the Detroit Lions are by watching a Oakland Raider game when the Greenbay Packers are winning the Superbowl.
Thanks for this post Ferd.
__________________
"The choices we make reveal the true nature of our character."
Jd has to stand with Obama, some brothas have to stick together ! Other Brothas like Charles Barkley and Bill Cosby tell it like is ,Terrible Terrible Terrible !
Really, Canam? Don't like throwing out the R word, but pretty sure it applies to this statement. Despicable.
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