Euro Hits All-Time High Against Dollar
April 27th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
I keep going back to U.S. Dollar Index Breaches Significant Weekly Supports: 80.85 on the U.S. Dollar Index is the critical support. We’re at 81.16 now. We’re approaching The make or break moment.
Via: Yahoo / AP:
The euro reached an all-time high against the dollar Friday as weak U.S. economic figures reinforced worries about a widening disparity between growth in Europe and the United States.
The euro hit $1.3682 in midday trading in Europe, shooting past its previous high of $1.3667 in December 2004 after the U.S. Commerce Department reported that economic growth slowed to a 1.3 percent annual rate in the first quarter of 2007, its weakest performance in four years. It then settled back a bit to $1.3677.
The 13-nation euro also hit a new high against the Japanese yen after inflation data from Germany, coupled with improved business and consumer sentiment, pushed it to 162.91 yen, up from the previous high of 162.53 yen on Thursday.
IT’S CERTAINLY NOT A SUPERPOWER ANYMORE…
Buh, Bye Dollar…
http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20070427:MTFH36468_2007-04-27_15-17-00_N26329937&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1
To students of history, the situation looks like a rerun of Britain’s decline 60 years ago, when massive postwar debt and a sharp slide in the pound forced the dissolution of the empire and marked the end of Britain’s days as a major world power.
“The United States is a power, but it’s hardly the only power, and it’s certainly not a superpower anymore,” said Jim Rogers, who co-founded the Quantum hedge fund with billionaire investor George Soros in the 1970s.
DEBTOR NATION
The dollar is perhaps the biggest problem. As a net debtor, the United States must attract some $3 billion every working day to finance a gaping current account deficit that in 2006 amounted to 6.5 percent of gross domestic product.
Economic rivals such as China and Japan, on the other hand, boast massive surpluses.”
A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.