US$ - Euro?

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  1. #1

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    US$ - Euro?

    Am I the only one who think that the US$ would crash? Somehow it has strengthened in the last couple of months, but I can't see how this is sustainable.

    Barak already had to ask China not to worry about its US$, something that no president (as far as I know) had to do until now. What do you think will happen in the future (next couple of years or so)?


  2. #2

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    Europe is not as strong as you think. Span/Portugal/Italy/Greece have really weak economies. Northern Europe has their own problems, too. Of course everyone in the EU was happy when the economy was booming. Let's see how they all get along once the going gets tough.


  3. #3

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    get into the only currency that are not affected by the mess of the global economies...


  4. #4

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    Quote Originally Posted by freeier:
    get into the only currency that are not affected by the mess of the global economies...
    Which is?

  5. #5

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    Zim dollars.

    After all, he'll be moving here soon enough, right?


  6. #6

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    What talks against the US$ is

    1) the huge amount of US$ owned by China, Japan (and many other countries). Surely sooner or later they will try to reduce it (or why would Obama go his way convincing China not to reduce it? Former US presidents didn't need to do that). Europe doesn't have such huge amounts of its own currency tucked away in foreign lands.

    2) the fact that Iran has started trading oil in Euros, and has set up an oil bourse, which should be trading oil in Euros soon. Venezuela might join soon, and other countries as well (the US has too many enemies in the middle east. And pretty much everywhere else too...).

    So if people move away from the US$, where would they go? RMB, Yen, but also (and probably foremost) Euro.

    Basically I think the US$ is the currency that can lose most, because it's the currency that is more widely held outside its own country.


  7. #7

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    the glittery ones.. 8-)