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Old 11-08-2007, 09:38 AM
bobman0330 bobman0330 is offline
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Default Re: The Dollar Plunges Further

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It's convenient for Sarkozy to blame his anemic economy on outside forces rather than the French government take responsibility itself. France hates the weak dollar, (and conversely, the strong Euro) because the outlook of its people and government is essentially mercantilist and they believe they can drive their economy by maximizing exports. And actually because of such high rates of taxation domestic demand might be so weak that this is actually true (euro for euro investment in exportable goods boosts the economy more because the foreigners buying have so much higher disposable incomes to purchase).

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There was a minor stink a month or two ago when Sarkozy tried to lean on the ECB to put some downward pressure on the euro to help French exports. He's probably just worried about Airbus.
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