Dollar Plunges To Near 15-year Low (1 Viewer)

[Ric Romero]

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/29/cndollar29.xml

The Bush adminstration is reportly working on plans to blame the newly elected Democratic led Congress.

 

[TPS]

A couple of relevant facts from Dobbs' Wed. editorial below. Jim Everett has been talking about the problems with the trade deficit for years (mostly falling on wooden ears).

http://www.cnn.com/2006/US/11/28/Dobbs.Nov29/index.html

TPS

 

[dapperdan]

Who knows, maybe the trade deficit becomes this generation's stagflation.

A low growth economy unable to reduce interest rates in order to defend the dollar.

On the other hand, the headline above is extremely misleading. Either the index breaks long term support, which is important, or it doesn't. Getting close doesn't matter.

 

[dapperdan]

btw, the reason, IMO, for the dollar's drop has very little to do with trade deficits. Please don't confuse this with saying that trade deficits aren't important, that's not what I'm saying. But the dollar's drop has everything to do with the interconnection between the U.S. economy slowing down which is being recognized by the bond markets, notice the large drop in interest rates today, which in turn is putting pressure on the dollar. While Lou Dobbs may be making a populist argument on CNN, he'd get laughed out of the bond pits in a heartbeat.

 

[covingtondog]

Outside of Louisiana, the US economy thrived under Reagan and we always had a weak dollar back in the day. Considering the global economy, I can't see where a strong dollar can be good for us. US companies making money overseas are more likely to bring those $'s home and the foreign-owned companies making money in the US are more likely to spend it here when the dollar is weak. It's mostly just perception...