Dollar continues to slide against Euro

[**DONOTDELETE**]

http://www.foxnews.com/story/0,2933,87840,00.html

[ QUOTE ]

FRANKFURT, Germany — The euro (search) hit an all-time high against the U.S. dollar on Tuesday, restoring prestige to Europe's 4 1/2 year experiment with a shared currency while making consumer goods and European vacations more expensive for Americans.

. . . . . .

The euro soared to $1.1914 in Asian trading, before slipping back slightly to $1.1895 as trading opened in Europe.

Driven down by U.S. economic woes including the trade deficit, the weak dollar could help recovery in the United States by boosting exports and fattening corporate earnings. Ordinary Americans, however, will run into higher prices for imported cars, televisions and other goods.


[/ QUOTE ]

The dollar is rather hollow today, with record trade deficits (over $500 billion - industries going off shore), high unemployment (especially among top wage earning proffessions - illegal immigration, H1-B visas, outsourcing overseas), and an ever looming war on terror.

The chickens are starting their way home already, it seems.

[DesertFox]

You gots that backerds, glen. This is good news.

[Etaoin]

DesertFox said:
You gots that backerds, glen. This is good news.

I think not Fox. What you are looking at is the destruction of those who have saved their money and invested it. The jobs are still going overseas and the companies that are still here are not making significant profits so they are not building inventories since there is a declining market to sell to. Growing unemployment, the problem of people running out of benefits and joining the growing list of the chronically unemployed, and the huge number of "baby boomers" in and approaching retirement are not a market that will bring prosperity. Just like Japan, the retired sector controls the greatest portion of wealth, but this sector also has the least needs (excluding healthcare) so where is the capital coming from to effect this "anticipated recovery"?

This is a classical catch 22 situation where this recession will wend its merry way until such time as the excesses are washed out of the economy. Nothing, I repeat, Nothing the government can do will prevent it. However, government attempts to ameliorate it will only exacerbate and lengthen the time of recovery.

Greenspan and Co. are systematically destroying the value of the $$$ by trying to maintain "confidence" in the capitalist system. The irony is that their attempts may ultimately end up destroying the system he is supposedly trying to save.. What is worse, Greenspan KNOWS that what he is doing is destructive as did Lord Alfred Keynes.

The fact is that we are approaching the bust that inevitably follows a boom. FDR through market interference managed to drag the recovery out to some 10 years when the market should have cleansed itself in @ 4 years. Sans 9/11, I think Bush is doing it as well as can be expected. With terrorism thrown in, it just isn't possible for the government to retrench and significantly reduce its drain on the productive sector.

During the "great depression" there were something like 7 "market recoveries" but the trend continued down...as will this one!

I can't tell you how delighted I would be if I were completely wrong!

[DesertFox]

Et, it will only destroy savings if it goes bonkers. I don't expect that to happen.

[**DONOTDELETE**]

It will go 'bonkers', DF.

Just wait and see.