Dollar Falls to New Low Versus Euro, Gold Mixed

[AnIndependentTexan]

http://ap.tbo.com/ap/breaking/MGBZFH8BG2E.html

LONDON (AP) - The U.S. dollar dropped to a new low Tuesday against the euro as investors remained concerned over the size of the U.S. trade and budget deficits. Gold prices were mixed.

The euro rose to a new high of $1.3470, compared to $1.3427 late Monday, before falling back to $1.3428 in European trading. Later, in midday trading in New York, the euro was quoted at $1.3435.

Since September, the 12-nation European currency has risen from around $1.20 over concerns about the U.S. deficits and signals that the Bush administration is not prepared to step in to support the dollar.

[Career Prole]

1. They mention that according to a Nobel prize winner the dollar's fall

"doesn't yet pose a threat to the global economy."

"Edward Prescott, who shared the Nobel Memorial Prize in Economic Sciences with Norwegian Finn E. Kydland for shedding light on how government policies and actions affect economies worldwide, said the U.S. deficit is not yet a problem."

That of course would be the same Edward Prescott who co-signed this letter nearly two years ago...

The Honorable George W. Bush
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500

Dear President Bush:

We enthusiastically endorse your economic growth and jobs proposal. It is fiscally responsible and it will create more employment, economic growth, and opportunities for all Americans. Moreover, it will improve corporate accountability and strengthen the nation's international competitiveness.

What they actually endorse is shrub's massacre of the economy in order to do in SS and Medicare.

[Sparkly]

2. Who thinks it won't stop here?

Europe is going to gain strength economically, militarily, and thus politically, while the US is going down, down, down... They are organizing specifically to counterbalance our insanity, seems to me.

As Hubby says, if we reach the day when oil is traded in euros instead of dollars, our economy will become virtually irrelevant to the rest of the world. And given our debt, we are in a vulnerable position indeed. And, Europe (and the rest of the world) is in no mood to help...

BushCo has been a recipe for disaster on EVERY level. Judging by the pictures today, we are fast becoming a ridiculous country with our own little dictator.