BooseNixon611
That was then. As of November 11, 2007, Veterans Day right here in the U.S., the euro is worth 1.46 American dollars. A single euro now buys...
Given that its creation in 2002, the euro ----a Frankenstein creation that replaced the former currencies of 12 European nations like France, Germany and Italy--- has beaten the socks off the American greenback. Back then, the euro limped out of the gate at a parity with the greenback. It swiftly dropped to about 86 cents for every single dollar.
That was then. As of November 11, 2007, Veterans Day right here in the U.S., the euro is worth 1.46 American dollars. A single euro now buys 46% more than its American peer.
Weve scratched our heads in this column about the decline of the dollar. Whats happening now is unprecedented.
The dollar has fallen to a 26-year low against the British pound. It has fallen to a 33-year low against the Canadian dollar.
What has occurred to place the dollar in a cost-free fall / All through the final century, each American President and every American Treasury Secretary has repeated the mantra that a sturdy dollar is American policy. As recently as October 10, two weeks prior to the G-7 Summit, each the present President and the present Treasury Secretary recited the mantra by heart.
I really feel really strongly that a robust dollar is in our nations interest, stated Treasury Secretary Henry Paulson, formerly Chairman of Goldman Sachs.
Whats missing is the and consequently. In the past, extreme drops in dollar values have brought sturdy corrective actions, a buy back of the dollar in impact to prop up the value. No such cavalry charge is coming in the present climate. In fact, some have recommended that the existing U.S. policy is a smug contentment that the decline of the dollar has boosted US exports by about 15%, since our exports are now more affordable for foreigners.
Which leaves all of us to wonder aloudwhat occurs if the dollars totally free fall continues? Is there any security net down there?
Dont bet on it. Secretary Paulson ha started adding a caveat to that ol robust-dollar mantra. and we think that currency values must be set in a competitive marketplace primarily based on underlying financial fundamentals.
Those underlying fundamentals are weak now in the U.S. A mortgage industry meltdown, coupled with an economy strained by the $576 billion cost of war have all but tapped out the U.S. economy for the time becoming. We are now in hock. We are the largest debtor nation on earth.
And what occurs when we take out some of our retirement in the type of those weakened dollars? A hidden charges of letting the dollar sink is that the acquiring power of these retirement savings ---as soon as they are converted to dollars is acquiring pretty pitiful. Worsening the situation is that, in contrast to many citizens of foreign nations, Americans who desire to maintain their money in euros discover really couple of US banks providing that flexibility. Some German banks (Deutsche Bank) and on-line banks (everbank) have begun offering accounts to Americans denominated in other currencies.
Brother, can you spare a euro?
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