USD - Euro

[dazraf69]

The dollar being at an all time low is hurting a lot of other nations such as the European Union. Their high Euro is having negative impacts on their economy. So I would imagine that the dollar will NOT drop for the next couple years compared to the Euro.

[mmctrab]

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The dollar being at an all time low is hurting a lot of other nations such as the European Union. Their high Euro is having negative impacts on their economy. So I would imagine that the dollar will NOT drop for the next couple years compared to the Euro.

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Unless you think the EU is going to start aggressively cutting interest rates, or the Fed is going to start raising rates I'd say the chances of the dollar falling farther are quite good especially if the economy here keeps weakening and other countries start diversifying out of dollars.

[Mort10]

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?

[mmctrab]

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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.

[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.

[Zygote]

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The dollar being at an all time low is hurting a lot of other nations such as the European Union. Their high Euro is having negative impacts on their economy. So I would imagine that the dollar will NOT drop for the next couple years compared to the Euro.

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if someone started to offer their goods to me at a cheaper price i guess i would refuse since thats bad for my economy?

[dazraf69]

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The dollar being at an all time low is hurting a lot of other nations such as the European Union. Their high Euro is having negative impacts on their economy. So I would imagine that the dollar will NOT drop for the next couple years compared to the Euro.

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if someone started to offer their goods to me at a cheaper price i guess i would refuse since thats bad for my economy?

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I simply don't think the US dollar will drop significantly against the Euro. I realize all the arguments against my hypothesis, but I still feel that some action will be taken. I still believe the dropping dollar was led by the US for compensation of our large trade deficit and there is more control of US currency than most like to believe. This is not to imply the dollar will go up in value either. Simply speculation though, hence the reason I do not trade currencies. [img]/images/graemlins/wink.gif[/img]

[Zygote]

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I still believe the dropping dollar was led by the US for compensation of our large trade deficit and there is more control of US currency than most like to believe.

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what do you mean by led by the US and what do you mean by control of US currency?

[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 $?