[lbo-talk] The Declining Dollar?

[Wojtek Sokolowski]

> Doesn't look like Bush's win helped the dollar against the
> euro- quite the opposite, in fact:
> 
> Euro Retreats From Brutal Rally Against U.S. Dollar After
> Hitting an All-Time High
> BERLIN (AP) -- European Central Bank president Jean-Claude
> Trichet expressed concern Monday about the growing
> strength of the euro, saying a rally that sent the shared
> currency to a fresh all-time high was "brutal" and "not
> welcome."
> <snip>
> Full at:
> http://biz.yahoo.com/ap/041108/euro_dollar_10.html

I guess that is an unwelcome news for the Germans and Brits, who are major
US trade partners
http://www.census.gov/foreign-trade/statistics/highlights/toppartners.html

However, a declining dollar will make the US less attractive for foreign
investors, and that will limit the US capability to borrow and bankroll its
deficit spending, which is a good news for those who wish all the worst for
this administration.  This will hurt the US more than the les competitive
Euro imports will hurt the European economy, no? Doug?

Wojtek