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US officials begin to show concern about the DollarUS officials begin to show concern about the Dollar
lil dickie said: "The dollar has been getting weak for quite some time and now "US officials" are beginning to [url=http://afp.google.com/article/ALeqM5jEofw7akDaWAYtAb19EFIcF-imyw]get concerned[/url]
[quote]
US officials are starting to show signs that they are concerned over the weakness of the US dollar, European Union Monetary Affairs Commissioner Joaquin Almunia said Monday.
"We are starting to see some signs of concern (among US officials)," he told a conference in Madrid, referring to the fall of the dollar which has weakened sharply against the euro and other currencies over the past 12 months.
While a weak US dollar can help the US shrink its trade deficit by fuelling export growth, Almunia said US officials "know that they cannot run the risk of investor flight from dollar-denominated assets."
US Treasury Secretary Henry Paulson has said that Washington "continues to bet on a strong dollar," he added.
The euro has neared the symbolic threshold of 1.50 US dollars, prompting concerns from European business groups who fear their exporters will be hurt.[/quote]
Obviously Europeans are beginning to get concerned too about their "strong Euro"...which will soon have them priced out of most exports.
What will happen next in this international monetary cat and mouse game?"
Airelon said: "I seriously think that Iran just seriously screwed themselves over. When this becomes the 'hot topic', and gains a bit in the news, it's for a reason. I don't see it as manipulation, but I do see it as a way to 'prep' the markets for upcoming news.
And it may be a good thing that Iran just screwed themselves over. A war with Iran is never a good thing. This could avoid it. Anyone who proports having a war with Iran seriously needs to read the fictionalized narrative of the historical events in James Clavell's "[I]Whirlwind[/I]" first. Wouldn't have hurt to read it before getting involved in Iraq either. There is no 'one nationality' Iraqi. They don't exist. Just the same as there is no 'one nationality' Iranian. So this could be a good thing on many fronts. Both on avoiding the loss of life, strength for the dollar, and the U.S. and western markets in the long run."
lil dickie said: "I don't see a war with Iran coming. At least militarily. But like you said in one post an economic one is brewing."
newinvestor123 said: "I think we came a lot closer to war with Iran than most people realize, the propaganda machine was in full swing there for a while, before several Congressmen/women spoke out publicly. The NIE report's purpose, I believe, was to permanently keep BushCo out of Iran. - And the Bush administration would still go today if he/they thought they could accomplish their goals without being sacked first.
As for the dollar, I think that instead of the US raising rates, other countries are going to continue to lower rates in order to support it. The only large entities selling dollars will be Iran, Venezuela, China, and possibly Russia, and the last two are maybies. The G7 nations are probably already in agreement that cooperation is necessary to prevent a dollar landslide. The key in all of this is the yuan - If China lets it rise, I think the easy monetary policy will stop."
ratAphooey said: "We are paying these idiots to be concerned all the time."