Dollar hits 2-month high vs. euro

tasco66 says on May 8, 2008, 04:57:

What does this look like to you?

http://finance.yahoo.com/q/bc?s=USDEUR=X&t=5y

Bravo, Presidente Uribe for the perfect operation!

0 funny, 0 helpful.

lpdiver says on May 8, 2008, 05:21:

And what does this look like? It is all a matter of perspective.
http://finance.yahoo.com/q/bc?s=USDEUR=X&t=5d&l=on&z=m&q=l&c=

t

"cook some rice!"

0 funny, 0 helpful.

OneHappyBoy says on May 8, 2008, 06:59:

after Bushy leaves office-and Barack is in- the Dollar will go back up... Our economy can't allow a weak dollar forever.... We just have crappy President that sucks at formulating good fiscal and monetary policy... As he gets closer to gettin' gone- the Dollar will rise against the COP

0 funny, 0 helpful.

jonas says on May 8, 2008, 07:10:

This is a "technical" move, look at the charts. The fundamentals are as bad as they were. The dollar might gain more for the moment. Trends are no one-way-streets, never.

What I have, I do not want to lose, but Where I am I do not want to stay, but those I love, I do not want to leave, but those I know I no longer want to see, but Where I die, I do not want to go;I want to stay where I have never been

0 funny, 0 helpful.

tasco66 says on May 8, 2008, 07:47:

Buffett Expects Weaker Dollar

He also through money policies in the U.S. would result in a weaker dollar.

"Overall I think that the U.S. continues to follow policies that will make the dollar weaken against other major currencies," he said.

http://www.ibtimes.com/articles/20080503/buffett-berkshire-hathaway-do...

Bravo, Presidente Uribe for the perfect operation!

0 funny, 0 helpful.

cali373 says on May 8, 2008, 09:22:

I hate to break it to some of you but the institution of the presidency does not have short term control on the value of the dollar. The Federal reserve has more control the US currency. The FED is also completely independent of the executive branch.

What is true is that over the span of the last eight years of policy of spending more and taxing less, without significant growth in revenue, which means the country owes even more now and receives less to pay obligations. This has caused the value of the dollar to weaken.

It will take more than 8 years to get back to pre-2000 dollar values where the USD was even with the Euro. but I hope it is less than that.

Smile if you are a thinker!

0 funny, 0 helpful.

nbenjamin says on May 8, 2008, 09:25:

A weak dollar is not necessarily a bad thing for the U.S. economy. Indeed, manufacturing in the United States has hit 10 year highs, much of this is attributed to a weak dollar. A weak dollar strengthens exports. In fact, Europe is now accusing the U.S. of having a policy that strives for a weak dollar. As for fundamentals, most experts agree the dollar is under valued while the Euro is over valued. Therefore, we will likely see somewhat of a recovery against the euro. You can really expect this recovery if Europe begins lowering interest rates and the U.S. begins to slowly raise interest rates. Something that is expected in the long run. This is not to say that a low dollar is all advantageous. Some attribute the weak dollar to hire oil prices. You can expect, however, that over the years the Colombian Peso and other currencies in "periphery" or "third-world" countries will continue to make gains against currencies such as the euro and the dollar. The reason is, because these countries are continuing to make enormous steps economically. But remember a weak dollar is not all bad - take note that China purposely sets their currency below the dollar - the real person who is impacted positively by a weak dollar is a traveller - and U.S. citizens spending money in other countries is not exactly something our government is that concerned with. Any how, U.S. citizens should start going to south america more and europe less.

0 funny, 0 helpful.

miamimike says on May 8, 2008, 11:24:

There is a definite correlation between a Weak Dollar and the Record High Price of Oil which is having a Negative Effect on the US Economy.

"""I'm certainly in the camp of dollar weakness driving crude strength," said Anatol Feygin, head of global commodity strategy at Bank of America.

"With growing OECD inventories, revised lower demand, increased OPEC production and a relatively mild hurricane season, the dollar seems to be much more the issue."

That, analysts say, is because one aspect of its longstanding relationship with oil is changing.

In the past, dollars earned by oil producers flowed into U.S. dollar assets or investments"""


http://www.cnbc.com/id/20988001/

"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? That's interesting. I hadn't heard that." -- Feb. 28, 2008 --George W. Bush, Washington, D.C.

0 funny, 0 helpful.

miamimike says on May 8, 2008, 11:28:

Weak Dollar and the price of Oil:



This is called "speculative investment." People buy oil not because they want oil, but because they are speculating that oil will keep going up.

Now, here's what's interesting: The weaker the dollar, the more this happens. Investors turn away from U.S. investments — Apple computer or treasury bonds, for example —because the dollar keeps losing value. They don't want dollars. That makes oil even more attractive, which sends the price of oil higher. That, in turn, weakens the U.S. economy, which sends the dollar lower.

So, it's not just the head of OPEC saying it. Many believe that a weak dollar can push oil up far higher than seems to make sense.


http://www.npr.org/templates/story/story.php?storyId=90041682

"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? That's interesting. I hadn't heard that." -- Feb. 28, 2008 --George W. Bush, Washington, D.C.

0 funny, 0 helpful.

b bruce says on May 8, 2008, 12:08:

Gentlemen! America as in the United States of America, needs to begin drilling it's own oil and natural gas, tapping it's own resources. The moment a U.S. President signs off on that the dollar will stablize and the price of oil will start coming down. When demand is high and the resources are controlled. Those with the resources control the price. When there is abundance of anything it is cheap. Obama will not be the next President of the United States! He needs just a bit more experience in these tough times (War on Terrorism and the Economy) Also his shady past is slowly catching up to him. But it has made the Democratic race sort of a reality show which is fun to watch! I can imagine Hugo Chavez has slipped the Obama campaigne some money, and I am sure the FBI is watching closely. Unfortunately we will be stuck with the best of the three evils Sen. John McCain!!!! Who has no economic know how! Unfortunately, for those of you who would like to see Obama or Billary in the White House, it will hurt Colombia. Because those two think the world of Fidel and Hugo! But a socialist in the top spot in Colombia? It's back to square one for Colombia. Perhaps a re-visit to much more violent times.

0 funny, 0 helpful.

lpdiver says on May 8, 2008, 12:17:

Miamimike...I agree and I do believe the pendulum will swing the other way; perhaps not as far, but it will come down. I don't believe we will see gasoline below two dollars though.

t

"cook some rice!"

0 funny, 0 helpful.

nbenjamin says on May 8, 2008, 12:27:

Miamimike - positives and negatives. Nothing more or less. The dollar impacting oil prices impacts the U.S. economy. But it is far harsher on the European economy.

0 funny, 0 helpful.

nbenjamin says on May 8, 2008, 12:28:

Also - it is not entirely clear that this thesis that the dollar weakening leads to hire oil prices. http://www.ft.com/cms/s/0/1232f96e-1c5d-11dd-8bfc-000077b07658.html Unquestionably this is the popular view, however, this week the dollar has seen gains along side of oil gains throwing mud in the face of this theory. although I tend to agree with you and invest in currency accordingly.

0 funny, 0 helpful.

tasco66 says on May 8, 2008, 13:50:

How odd is this? The melt value of pennies and nickels exceeds their purchasing power.

“If we continue minting coins with the current metal content,� Rep. Luis Gutierrez, D-Ill., said this week, “with each new penny and nickel we issue, we will also be contributing to our national debt by almost as much as the coin is worth.� Gutierrez, who oversees the U.S. Mint in Congress, says minting these coins above their material value cost the U.S. Mint an extra $100 million last year.

In late 2007, the U.S. government paid 1.67 cents for every new penny and nearly 10 cents to mint a new nickel. Despite a correction in the global price for copper, zinc and nickel, the U.S. government is still paying more to produce pennies and nickels than their “worth.�

Today, a penny costs 1.26 cents, and a nickel 7.7 cents.

Bravo, Presidente Uribe for the perfect operation!

0 funny, 0 helpful.

Catfish35 says on May 8, 2008, 16:07:

B BRUCE,
it is unfortunate but i concur!

"So many guns, and so few brains". sam spade

0 funny, 0 helpful.

nueva york bombero says on May 8, 2008, 16:21:

I'm off to Spain in a few weeks.... I guess I'm going to get killed, huh?!

0 funny, 0 helpful.

Noelito40 says on May 8, 2008, 16:37:

I´m no expert, but would it not be the case that in an election year, companies that are planning on investing, keep their powder dry until they see who gets the presidency because then they know the score with the new president´s monetary and fiscal policies? Markets like nothing worse than uncertainty, so the business heads just delay their decisions until the uncertainty of who will be pres has passed.. If this is the case, I would expect the US economy (and dollar) to improve later this year/early next year...??

Noelito

0 funny, 0 helpful.

miamimike says on May 8, 2008, 18:56:

Myth---"The Naysayers and Pundits in 2000 bla-blaed that Bill Clinton would be terrible for the US Economy because he was Democratic"

Reality 2000-2008---Facts "The US underwent a Huge Runup in the Stock market and Job Expansion"

Don't believe what these Pundits say about Clinton or Obama because the History of the Matter simply does Not Support that claim,,,

"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? That's interesting. I hadn't heard that." -- Feb. 28, 2008 --George W. Bush, Washington, D.C.

0 funny, 0 helpful.

BillBigD says on May 8, 2008, 20:14:

Miami-Don't you think the last 4 years of Clinton were the biggest myth in USA history. High tech hes still not recovered.

0 funny, 0 helpful.

pedro says on May 8, 2008, 22:17:

b bruce -- "Gentlemen! America as in the United States of America, needs to begin drilling it's own oil and natural gas, tapping it's own resources."

What exactly do you think is happening in Louisiana, Texas, offshore Gulf of Mexico, California, Alaska, ...?

Needs to begin drilling... WTF?

Newsflash -- the USA has a buoyant oil and gas industry... has had one for about the last 100 years.

que nota!

0 funny, 0 helpful.

Robert Jorge says on May 8, 2008, 23:26:

Pedro, I would guess b bruce was talking about the proven reserves the US has, that it won't allow to be tapped. I don't need to name them off. And also no refineries built since something like 1974.

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy

0 funny, 0 helpful.

miamimike says on May 9, 2008, 05:33:

Big Bill D--Look only at the Numbers during Clinton's 2nd term,,,Only the Facts.

If CAFE Standards are not significantly raised, I fail to understand the logoc of using our Untapped US Reserves. If we had stayed the course on Alternative Energy and Vehicle Research iniated in the late 70s-early 80s, we could be on par with Brazil(energy efficient it is reported). Instead, the research was shelfed and now we are paying the unintended consequences,,,

"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? That's interesting. I hadn't heard that." -- Feb. 28, 2008 --George W. Bush, Washington, D.C.

0 funny, 0 helpful.

cali373 says on May 9, 2008, 06:26:

nbenjamin

I understand your arguement regardig a weak dollar, however the point where a weaker dollar has benefitted the economy has been surpassed and is no longer a benefit. The reason is that it is now more costly to purchase barrels of oil. this is not a thesis (?) it is a fact. Therefore driving up the cost of EVERYTHING! This is not good for US americans that have already been seeing "real wages" decrease since 1973. The increase in exports has not helped against the decrease in purchasing power.

A weaker dollar is only a benefit when inflation is tamed. The Federal Reserve has been conveniently quiet about inflation lately.

Smile if you are a thinker!

0 funny, 0 helpful.

nine inch nails says on May 9, 2008, 09:00:

from CNN money.com...

"Why Europe will save us from $5 gas
The unwillingness of Europe's central banks to cut rates will eventually lead to a continental slowdown, a stronger dollar and lower oil prices."

Hoo yah Europe! Thank you. Thank you.

get down, get down. are you afraid of the boogie monster?

0 funny, 0 helpful.

kat1 (Moderator) says on May 9, 2008, 09:31:

engage brain before opening mouth

0 funny, 0 helpful.

Frank Rizzo says on May 9, 2008, 09:53:

jajajajajaj Kat....that IS FUNNY !!!!

0 funny, 0 helpful.

miamimike says on May 9, 2008, 10:56:

nbenjamin says on Thursday May 8th, 2008 12:27:

Miamimike - positives and negatives. Nothing more or less. The dollar impacting oil prices impacts the U.S. economy. But it is far harsher on the European economy.

------------------------------------------------------------------------------------------------------------------------------------

Yes but fon't forget this that due to the extensive Public Transit Systems already in Place in many European countries(as well in many Asian countries) Consumers and Workers have Options otherwise then driving(trains, buses, subways) that the US Consumer doesn't have.

"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? That's interesting. I hadn't heard that." -- Feb. 28, 2008 --George W. Bush, Washington, D.C.

0 funny, 0 helpful.

nbenjamin says on May 9, 2008, 11:01:

"conveniently silent regarding inflation" - Actually the numbers are out - inflation is still very very very low, much lower than predicted. I recommend the Financial Times an English based paper - it is a good way to keep up on the economy. As for hire oil prices, generally accepted that this has a bigger impact on europe than the U.S. The impact of gas on the average americans budget is far exaggerated. But again I do agree with you, I would like to see the dollar a little stronger. What imports aside from oil are impacted and making the average americans life more difficult? And when you say real wage decreases since 1970's? Based on what? Where did you get this number. It is an accepted fact that no matter how much people cry - Americans - have much more than they did just 40 years ago. I would be interested, however, in a study that suggest otherwise. Please forward along the reading for that argument. Thanks so much.

0 funny, 0 helpful.

jonas says on May 9, 2008, 11:09:

nbenjamin says: "Americans - have much more than they did just 40 years ago. I would be interested, however, in a study that suggest otherwise"

I assume you are talking about public and private debt?

For you dollar longs I recommend you take a look at todays www.dailypfennig.com to find some numbers that maybe you have not been taking into account.
what is it with a rising Dollar, rising Oil and rising Gold prices at the same time?

What I have, I do not want to lose, but Where I am I do not want to stay, but those I love, I do not want to leave, but those I know I no longer want to see, but Where I die, I do not want to go;I want to stay where I have never been

0 funny, 0 helpful.

cali373 says on May 9, 2008, 11:09:

"nine inch nails", that may or not be an accurate prediction. Europe is enjoying strong currency and its largest trading partners are other European nations with a strong currency so exports are not declining. Now a continetal slowdown may result in lower oil prices because less oil will be needed to run the economies but Europe has never consumed oil like the U.S., China and India. Europe also leads the rest of the world in alternative energy and conservation. Which may help with oil prices.

What I dont't understand is how a European slowdown will lead to a stonger dollar. A currency's strength has to do with supply and demand, not a slowdown of other economies.

ADVICE: stick to Bloomberg and Barron's for quick financial advice. Stick too CNN and FOX if you want to know about Britney Spears

Smile if you are a thinker!

0 funny, 0 helpful.

nbenjamin says on May 9, 2008, 13:28:

"Europe has a strong currency so exports are not declining?" Actually exports are declining for european nations - and european leaders have continued to state their fears regarding the weakening dollar. I am not necessarily a "dollar long" guy. But that statement is plain and simple a joke. Are you aware that Europe has been pushing the United States to change their policy regarding the dollar. That european economist are in agreement regarding the weakening dollar. Here are some article regarding currency - http://www.ft.com/markets/currencies. That was a joke right - all of europes trading partners are the other european nations right and all of the united states trading partners are other states (this sentence is sarcastic).

Europe leads the world in Alternative Energy? Where did you base that on? In fact, europe without question does not lead the world based on Alternative energy. When you state lead the world do you think of the world as the U.S. and Europe. And is it even clear that the Europe leads the U.S. in alternative energy solutions? I mean it is european car companies that have really been doing the most about reduction in the use of gas -err no that is toyota a japanese car company. Ummm Brazil ring a bell - the entire country does not use gas. But europe leads the world they invented the hybrid (they did not). That is an idiotic statement europe leads the world.

Finaly the grandest most idiotic statement of them all: ""What I dont't understand is how a European slowdown will lead to a stonger dollar. A currency's strength has to do with supply and demand, not a slowdown of other economies."" What are you talking about. Actually people trade currency based on variety of factors. In fact - supply in demand is so vague - I am not sure what you mean. Do you mean purchasing power that is how much the currency is actually worth? Based on purchasing power the dollar is undervalued and the euro is overvalued (this is purchasing within their own country). Although this is one factor people trade on it is not the only factor. When you say supply and demand do you mean how many dollars are out there and how much people are willing to pay? If that is the case, then let me give it to you simple since "you dont understand." If the european economy goes in the toilet less people are going to want euros and more people will want to get rid of them. Thus, the supply of available euros will go up and the demand will go down and the price will be impacted, including against the dollar. So the economy has a lot to do with the currency exchange rates. As for example the weak us economy has led to a lowering of interest rates and a weaker dollar. "What does the economy have to do with currency." In that very statement you demonstrated to the board that you are an idiot. Sorry. That is just dumb. What does the economy have to do with currency rates. Right seriously, I mean so what people are losing their jobs - I mean how does the economy impact job losses - jobs are about supply and demand *(sarcastic). In fact the currency market is very complex and is pushed one way or another based on speculation and a variety of other factors.

Finally thanks for the "advice" but based on your statements I will pass.

0 funny, 0 helpful.

expatriate says on May 9, 2008, 14:12:

Ladies and Gentlemen, the USD is headed to the scrap heap, as well as eventually all other unbacked paper money. Predictions are for Europe and probably Asia to collapse this year, and the U.S. in 2009.

Unbacked fiat currencies have never survived the test of time.

Buy silver one ounce coins for small transaction trading during the Mad Max days coming, and also because it is becoming a rare, useful, industrial metal, being used up faster than it is being mined.

It is good to have a little gold also, but pay cash for it (off the grid) like you would if you don't want it taken from you, as has happened in the past.

Also, don't use bank safe deposit boxes. Those are wide open for confiscation. You know already about the Savings and Loan Scandals from Father Bush's days, and now the taxpayer supported bank scandals of 2007-?, and the involvement of the Bush crime syndicate.

To quote the smirking chimp:

"If this were a dictatorship, it would be a heck of a lot easier, just so long as I'm the dictator" CNN.com, December 18, 2000 - http://www.cnn.com/TRANSCRIPTS/0012/18/nd.01.html

"You don't get everything you want. A dictatorship would be a lot easier." Describing what it's like to be governor of Texas. (Governing Magazine 7/98) http://www.buzzflash.com/premiums/Is_Our_Children_Learning.html

"A dictatorship would be a heck of a lot easier, there's no question about it, " [Bush] said. -- Business Week, July 30, 2001 - http://www.businessweek.com/bwdaily/dnflash/jul2001/nf20010730_347.htm

Believe it or not, laws are in place for a President to declare martial law, at any time, for any reason. Those laws were not written if they were not to be used.

0 funny, 0 helpful.

gringoloid says on May 9, 2008, 16:46:

jonas, I'm surprised you found the daily pfenigg; that is one heckuva great newsletter. I also do a lot of work with everbank.

that was a good article yesterday....................he used a lot of commentary from the 'daily reckoning.'

0 funny, 0 helpful.

gringoloid says on May 9, 2008, 16:47:

good to have you back expatriate...........................you're in rare form also.

0 funny, 0 helpful.

rocinante says on May 10, 2008, 06:07:

Roosevelt - the last president to actually run the country. Taking the US off the Gold Standard was the biggest mistake in the history of the US economy. IMHO

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

0 funny, 0 helpful.