Article

2004-11-24 Europe

ECB chief may fail to stem euro's "brutal" gain

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Posted by tipper 2004-11-24 5:53:52 AM|| || Front Page|| [3 views since 2007-05-07] Top

#1 I understand the central banks historic fear of inflation, but it seems that this is an ideal time for an interest rate cut.

Posted by Shipman 2004-11-24 6:19:17 AM|| 2004-11-24 6:19:17 AM|| Front Page Top

#2 Europe was content to see the US carry the burden in Iraq. Since that is one major contributor to budget deficits, we have less leeway to manage current account deficits except by letting the dollar drop.

Writing off a good part of Iraq's debt was a good move, but I suspect many countries had already discounted the idea of getting much of that back directly. What they were counting on was access to Iraq's oil at favorable prices (cf. France).

They rolled the dice and are hurting as a result.

Still, I don't want the whole world to go into recession as we do export a fair amount. Nevertheless, my sympathy meter seems not to be working after overt power moves against the US economically on the part of the EU.

Posted by Ebbavith Chack2995 2004-11-24 7:38:12 AM|| 2004-11-24 7:38:12 AM|| Front Page Top

#3 We've been carrying the world on the back of our overvalued currency for decades. What is truly amazing is the growth rate we were able to maintain for all this time in the face of it all.

It's time to let the free markets decide on currency valuation.

Posted by Damn_Proud_American 2004-11-24 9:11:22 AM|| [http://brighterfuture.blogspot.com] 2004-11-24 9:11:22 AM|| Front Page Top

#4 I wonder what kind of monkey business Sorros is up to? The is the kind of stuff he loves to profit by. That said the dollar should be allowed to seek it's own natural level. Maybe people will get a clue. The EU has it's own problems. Let them fix them.

Posted by Sock Puppet of Doom 2004-11-24 9:51:27 AM|| [http://www.slhess.com] 2004-11-24 9:51:27 AM|| Front Page Top

#5 The EU's not a major factor here. It's the Asian central banks that really matter, and they're managing the dollar's readjustment quite well, as they've done before.

Posted by lex 2004-11-24 12:00:06 PM|| 2004-11-24 12:00:06 PM|| Front Page Top

11:47 Kalle (kafir forever)
00:02 Kalle (kafir forever)
00:00 Bomb-a-rama
23:51 Rafael
23:48 Brett_the_Quarkian
23:46 Atomic Conspiracy
23:46 Kalle (kafir forever)
23:45 Bomb-a-rama
23:21 Beau
23:11 Kalle (kafir forever)
23:09 Capt America
23:06 Capt America
23:02 BillH
22:59 BillH
22:54 Verlaine
22:50 Verlaine
22:48 2b
22:48 2b
22:38 anon2
22:35 True German Ally
22:32 Laurence of the Rats
22:31 phil_b
22:23 Angie Schultz
22:05 lex