Singing Loudly: Travelling Abroad

Singing Loudly

Monday, November 08, 2004

Travelling Abroad

In case you were interested in travelling abroad, do it soon. The Euro is continually kicking our ass in the global markets (despite the fequenency to which the conservatives will argue that we've got a stronger economy than Europe -- they don't read economic reports), and, as shown by Daniel Drezner, it is only going to get worse. From the Financial Times we get this sobering prediction:

The dollar could slide still further, in spite of hitting an all-time low against the euro last week in the wake of George W. Bush's re-election, currency traders have said.

Many currency traders were taken aback on Friday when the greenback fell in spite of bullish data showing the US economy created 337,000 jobs in October.

"If this can't cause the dollar to strengthen you have to tell me what will. This is a big green light to sell the dollar," said David Bloom, currency analyst at HSBC, as the greenback fell to a nine-year low in trade-weighted terms....

[T]he market has been rife with rumours that the latest wave of selling has been led by foreign governments seeking to cut their exposure to US assets.

The problem is that there aren't any countries willing to invest in the dollar any longer.

I guess this is one way Bush can force us to become more isolationist.


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