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| Europe |
| Europe seeks to blame dollar for its sluggishness |
| 2004-01-27 |
| EFL, from an article about the World Economic Forum If the issue is the sluggishness of the European economy, the problem may be that not everyone is doing their best, analysts said after taking in the thousands of words spoken at the Davos meetings by policy makers, economists and others. As the forum drew to a close over the weekend, several euro-zone policy makers tried to distance themselves from responsibility for the region’s doldrums. Growth has not recovered more strongly, they said, in part because the United States is letting the dollar weaken, making European exports less competitive globally. In effect, said the French finance minister, Francis Mer, Washington has been telling Europeans, "My currency is your problem." Mer added, "We need responsible behavior from everyone." During a discussion on the global economy, the German economy minister, Wolfgang Clement, seemed to suggest that euro-zone policy makers were powerless to take any steps that might result in the euro’s swinging lower against the dollar. "The currency problem is on the table," Clement said, "and the United States must solve it." Nope. good luck - hope you figure out how markets work, soon ..... Analysts agree that the Bush administration has been tacitly allowing the dollar to weaken, not by actively talking it down but by pursuing policies that have swelled the U.S. trade deficit and the government’s budget deficit. But many also expressed disappointment at what they saw as an abdication of responsibility by European officials, who they say are doing nothing about a problem that is hurting the region’s economy. Instead of blaming Washington for sluggish growth, said Jacob Frenkel, chairman of Merrill Lynch International, euro-zone policy makers should "ask themselves why, even before the dollar fell, they were growing more slowly than the U.S. economy." The reasons, Frenkel said in an interview, are that the euro-zone economy remains far less flexible than America’s. Yup. Read the rest .... |
| Posted by:rkb |
| #11 Geez, we're really getting back to the 80s again. Anyone else getting really, really tired of "It's all your fault?" $ high - they bitch $ low - they bitch |
| Posted by: Anonymous2u 2004-1-27 7:47:14 PM |
| #10 ....at what they saw as an abdication of responsibility by European officials What? Eeewe officials derelict in their duties? It's America's job to do eeewe's job doncha know? I just hope George Soreass loses his ass on his dollar speculation. |
| Posted by: Gasse Katze 2004-1-27 6:06:18 PM |
| #9 I like this site. ................. Me: But Dad, I want a car. Dad: You can't have a car. Me: But X has a car, and I'm doing better than him at school. Dad: The reason you're doing better is that you don't have a car. Parental Logic. But right. To the E.U.: wan't to be the reserve currency? OK. You got it. Now you have to grow up. ------------------ On another note, hope you guys wiegh in on the attempted political assasination of Tony Blair over the whole "pay for" edumacation thing. They tried to get him on privatizing healthcare thing. But this week, they've had a willing accomplise in CNNi. With guest star Robin Oakley. Fascinating. |
| Posted by: Beets 2004-1-27 4:53:56 PM |
| #8 #7 Blah , Blah , Blah -- the eurotrash needs to get into the real world. You mean bastards, I'm going to my room and cry under a pillow and think orrible thoughts about Mike Moore. |
| Posted by: Tarryeton 2004-1-27 4:18:48 PM |
| #7 Blah , Blah , Blah -- the eurotrash needs to get into the real world. The cold war is over and the United States isn't going for the status quo anymore. It is time that the Euro's put their money where their mouth is. Trying to be a pole in the world has consequences. They are big boys now - have the strong euro. This is basic macro economics - when your currency is strong your exports cost more and imports cost less. The US needs to refocus on where the growth is in the 21st - the Pacific. |
| Posted by: Dan 2004-1-27 2:15:04 PM |
| #6 This is what happens when one side in a conflict has a realistic understanding of economic principles while the other lives in a socialist dream land. Sorry Europe, you're on your own on this one. |
| Posted by: whitecollar redneck 2004-1-27 2:07:25 PM |
| #5 4IV - LOL! United States is letting the dollar weaken, making European exports less competitive globally. but..but...how can it be "globally" when you are only talking about the problems in the USA?? It's a big world...can't you rely on your own If evil US capitalism (v/s brilliant EU socialism) isn't to blame, then shouldn't you finally be in a position to stick it to us? If not now...when???? |
| Posted by: B 2004-1-27 1:58:18 PM |
| #4 Translation: why has McDonald's fries and cable television forced me to become a seditary couch potato that is two jelly donuts away from 3 bills? Recommendation: More work and fewer strikes. |
| Posted by: Super Hose 2004-1-27 12:47:17 PM |
| #3 In other news, the EU declared that economic principles, Newton's second principle and general laws of gravity were abolished in the European Union |
| Posted by: Frank G 2004-1-27 12:27:15 PM |
| #2 In effect, said the French finance minister, Francis Mer, Washington has been telling Europeans, "My currency is your problem." Funny, I don't recall any many French finance ministers bitching two years ago when the Euro made its run up. Probably busy dancing on tables... |
| Posted by: Raj 2004-1-27 11:39:57 AM |
| #1 What, they couldn't find some way to blame their mess on the JOOOOOS?! Bunch of tossers just aren't trying. |
| Posted by: 4thInfVet 2004-1-27 11:39:16 AM |