The value of the dollar is near 10 year highs against European currencies.  From a technical analysis standpoint, it is forming a classic head-and-shoulders formation that indicates a downtrend. Greenspan is slashing interest rates and pumping the money supply to fight the recession, which will devalue the currency.  Gold is climbing, which happens when people are scared of inflation...which is basically the currency becoming devalued.  It looks like the value of our currency is going to plunge over the next year.  
[img]http://blacktusk.commerce.ubc.ca/fx/cache/EUR-USD-1001-0-0-2448258-2452030.PNG[/img]

I'm not a chicken little, it's just an observation.  It'll be good for our exports, but it will hurt consumers.  What do you think, lordtrader?

No, I think money will flow INTO Europe and Canada, out of American denominations and dollar-valued assets.

Do we care? we nolonger have to foot the bill!! bye UN well be seing you

Last time I checked gold was at an all time low of 264 dollars an ounce. I'm sure it's been lower, but if you average in what a dollar would buy you back then, it's at a low. When did gold start climbing?

You can pay in US $ dollars from Alaska to Australia and everywhere in between. The Euro will be another failed European Attemp to fuck us.

They can't agree on anything and will soon be going at each other's head.

The Euro will dive....like Europe

I believe you are correct. I think the dollar falling will be good for out economy. It will stimulate the economy faster(tourism, exports, and gov't debt issue will be more attractive) and maybe avert the recession fears that is looming over our heads. Hmmmm....maybe CitiGroup did make a wise decision buying into a Mexican bank. Pennies on the dollar with room for growth. Not to mention the gov't backing from the deal.

So should I take my cash I got stashed and
buy all the guns I can??

That way at least I will have something of value {if the don't get banned},and not a pile of dirty paper.

I expect the Euro to continue to fall.  Europe is run by socialists and a number of the big economies there now have structural unemployment rates of 10 percent or more.

GunLvr

You need to ge back and study head and shoulder patterns.

We have NOT seen a head and shoulder pattern yet, we are actually a touch of the highs.  At best we have seen a shoulder and head but it is still way to early to tell.

The Feds sole purpose is to fight inflation by using interest rates.  If they do their job we will never see high inflation again.

Also if you compare inflation today vs. 90-91 we are at far lower levels and stabalizing.

Money flow is not being increased, we are still trying to work out the overflow from the Y2K scare when the Fed pumped out extra currency.

I wouldn't run out and buy gold just yet or ever for that matter, there are much better hedges today.

[dracula]

Woo hoo!  I was right!  I KNEW the dollar was headed for a fall, though it took a lot longer than I thought it would.

THURSDAY AUGUST 16 2001

[b]Dollar falls as IMF warning fuels unease[/b]

BY GARY DUNCAN, ECONOMICS CORRESPONDENT

THE dollar succumbed to deepening losses yesterday as selling pressure on the US currency intensified in the wake of an International Monetary Fund warning over its vulnerability.
The IMF’s comments stoked rising market unease over the American economy and the dollar’s value, fuelling a fresh sell-off that sent it tumbling across the board. The exposed US currency slumped more than 1 per cent against the euro, the pound, the yen and the Swiss franc as traders worldwide scrambled to sell.

The losses saw the previously embattled euro leaping higher. Breaking through key technical barriers, the single currency climbed as high as 91.17 cents, up 0.87 cents from Tuesday’s US close and marking a five-month low for the dollar.

The US currency has now shed more than 4 cents against the euro during the past six days alone, while falling more than 6.5 per cent from the 15-year overall highs against a basket of main currencies that it set in early July.

The dollar’s drop also saw it losing nearly 1.75 cents against the pound yesterday, pushing sterling to a three-month high of $1.4392. But sterling was left languishing against the resurgent euro, closing at 63.36p, up a little from a five-month low of 63.58p, equivalent to DM3.0764, set earlier in the day.

Yesterday’s dollar losses were accelerated by nervousness over rumours that Paul O’Neill, the US Treasury Secretary, would raise question marks over America’s strong-dollar policy in a television interview. Determined efforts by US Treasury officials to insist that the policy was unchanged failed to dispel uncertainty before Mr O’Neill later reaffirmed it in his broadcast.

Markets have been reassessing their view of the dollar since last week, when a gloomy assessment of US prospects in the Federal Reserve’s “Beige Book” dealt a blow to confidence.

Figures yesterday offered little relief. US industrial production fell 0.1 per cent in July — less than expected, but marking ten months of decline. With business sales also seeing the steepest fall for nine years, analysts said the data may see US second-quarter growth revised to show a decline, leaving the economy on the edge of recession.
[url]http://www.thetimes.co.uk/article/0,,5-2001283717,00.html[/url]