USD - Euro

[dazraf69]

It is my opinion that the drop in the US currency was a shift to cheap dollar by the US government in response to a growing trade deficit. At the same time it allowed the government to show a reduced account deficit.

This could be the first step in making a case for the Amero [img]/images/graemlins/grin.gif[/img]

[vetiver]

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It is my opinion that the drop in the US currency was a shift to cheap dollar by the US government in response to a growing trade deficit. At the same time it allowed the government to show a reduced account deficit.

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How did the federal government implement changes that drove down the $?

[dazraf69]

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Officials of the largest global economies, at separate meetings in Berlin and Santiago on Nov. 20 and 21, indicated that they're going to allow the buck to fall for a while as the U.S. seeks to lower its now-infamous "twin deficits" in its current account and trade balances with other nations.

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-businessweek

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Some economists also argue that competition between countries is part of globalization's rising tide that will eventually lift all boats.

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-IHT

This was a good read IMO regarding the falling dollar.

http://www.spiegel.de/international/...453906,00.html

[Mort10]

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Do you guys think outside political pressure from will have any effect on the Feds decision for the interest rates in the next year or so? There is already a good amount of pressure coming from Europe and the middle east. Will the Fed disregard this completely?

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I would say yes to your question since the Fed will be preoccupied with trying to prevent a serious economic collapse. Other countries complaining about the falling dollar will not be a major part of the decision making process.

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Well the danger is that other countries will impose some restraint on US imports to protect their economies. I know this is extreme, but I do think the EU will try to put some pressure on the Fed. We also have to remember that the Fed is THAT important when it comes to future growth. And you guys will have serious issues regarding inflation in the coming years if the dollar keeps falling.