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sisyphusshruggedThe rest of the world - you know, the countries whose opinions just over half of us rejected last week - are apparently not willing to keep investing in Our Fearless Leader's budgetary prowess
OK, Mr. Bloom, not an economist, but I will presume to venture that narrowing US budget and current account deficits, lessened geopolitical risks and a policy of engagement on behalf of the dollar might do the trick.
Among Our Fearless Leader's great and good friends who are getting out of the dollar: China, India, Russia and petrodollar investors in the Middle East (just think, outsourcing is gonna cost more now. The base will just love that).
They're getting into Euros instead.
That'll show old Europe.
via atrios
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.
The dollar sell-off has resumed amid fears among traders that Mr Bush's victory will bring four more years of widening US budget and current account deficits, heightened geopolitical risks and a policy of "benign neglect" of the dollar.
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.
OK, Mr. Bloom, not an economist, but I will presume to venture that narrowing US budget and current account deficits, lessened geopolitical risks and a policy of engagement on behalf of the dollar might do the trick.
Among Our Fearless Leader's great and good friends who are getting out of the dollar: China, India, Russia and petrodollar investors in the Middle East (just think, outsourcing is gonna cost more now. The base will just love that).
They're getting into Euros instead.
That'll show old Europe.
via atrios
