TOKYO (Reuters) - The dollar held near a three-month high against the euro and a one-month peak versus the yen on Tuesday, supported by U.S. efforts to tighten fiscal policy and the Federal Reserve chief's optimistic take on the huge U.S. deficits.
it wasnt, other factors credited were Greenspans outlook, and decreased trade deficit (US exporting more per imports than before)Originally posted by: dullard
I think it is a bit silly to put this move all on the new budget proposal.
I dunno, I see a nice spike in each of them the last few days. But I'm just an optimistEuro vs Dollar Graph. Things have been moving up steadilly since the beginning of the year. You could easilly fit a straight line fairly well from then until now. The proposal didn't appear to affect that linear increase much. Plus if you look back 5 months, the gain has been small compared to the drop.
Yen vs Dollar Graph I'd be hard pressed to say that there has been any significant change in the last 3 months. Sure there are weekly spikes, but overall it is flat. Any move since the budget release is right in line with the spikes and certainly well off the pace that it was 5 months ago.
Sorry, I based the thread on multiple sources. I try to read the same story from different news services to get all the details. I guess I didnt realize the one I linked didnt back up all three causes (I usually prefer to link to Rueters)Originally posted by: Stunt
Also a lower dollar does equal a higher trade output....but he is reporting a HIGHER dollar...
Train you should change your topic, confusing the people around here.
ie. "budget cuts rally US dollar"
Originally posted by: Stunt
Yeah i think the cuts were too deep at once, especially with the US war.
Also, spending cuts should have happened at the same time, not 4 years down the road.
Now, if you take into account the increased cost in SS and the iraq war, the deficit wouldn't be that bad.
I'd say Iraq was a bad fiscal decision...but that's the only thing Bush really had any control over from a deficit point of view...
Originally posted by: Stunt
It should be included...
why would you have "off-budget" deficits...in the end you are still paying it from your debt load.
I would expect that, boomers are still working.Originally posted by: ntdz
Originally posted by: Stunt
It should be included...
why would you have "off-budget" deficits...in the end you are still paying it from your debt load.
Actually, right now SS isn't losing money, so I don't see how it could be included in a "deficit." It's still taking in more than it gives out. In 2018-2020, it will start to pay out more than it gets in.
no, I never said that. Its actually the shrinking trade deficit that causes a rising dollar (not the other way around)Originally posted by: Stunt
But not making the case for higher dollar causing trade deficit change, right?
sure, why notBasically a thread on the overall improving US economy?
:thumbsup:
Originally posted by: Jhhnn
I suspect this optimism will be short -lived. Bush's budget cut proposals are like holding up the line at the teller window while the safe is being emptied out in the back, and Greenspan's remarks are mostly wishful thinking, and an attempt to stave off the inevitable.
Short term optimism doesn't indicate long term stability, at all. Neither Bush nor Greenspan have addressed the structural issues that will force further dollar depreciation...
Originally posted by: charrison
Originally posted by: Jhhnn
I suspect this optimism will be short -lived. Bush's budget cut proposals are like holding up the line at the teller window while the safe is being emptied out in the back, and Greenspan's remarks are mostly wishful thinking, and an attempt to stave off the inevitable.
Short term optimism doesn't indicate long term stability, at all. Neither Bush nor Greenspan have addressed the structural issues that will force further dollar depreciation...
what issues are those?
Originally posted by: ntdz
Originally posted by: charrison
Originally posted by: Jhhnn
I suspect this optimism will be short -lived. Bush's budget cut proposals are like holding up the line at the teller window while the safe is being emptied out in the back, and Greenspan's remarks are mostly wishful thinking, and an attempt to stave off the inevitable.
Short term optimism doesn't indicate long term stability, at all. Neither Bush nor Greenspan have addressed the structural issues that will force further dollar depreciation...
what issues are those?
For one, our trade deficit.
as India and China become more modernized, thier currencies will rise. Thus making thier labor more expensive, and the US will send less work there. I dont see the trade deficit as a long term problem, even in worst case scenario it will eventually level out, its impossible for americans to ship 15 billion more a year overseas than they get in return, for very long.Originally posted by: ntdz
Originally posted by: charrison
Originally posted by: Jhhnn
I suspect this optimism will be short -lived. Bush's budget cut proposals are like holding up the line at the teller window while the safe is being emptied out in the back, and Greenspan's remarks are mostly wishful thinking, and an attempt to stave off the inevitable.
Short term optimism doesn't indicate long term stability, at all. Neither Bush nor Greenspan have addressed the structural issues that will force further dollar depreciation...
what issues are those?
For one, our trade deficit.
Originally posted by: Train
Originally posted by: ntdz
as India and China become more modernized, thier currencies will rise. Thus making thier labor more expensive, and the US will send less work there.Originally posted by: charrison
Originally posted by: Jhhnn
I suspect this optimism will be short -lived. Bush's budget cut proposals are like holding up the line at the teller window while the safe is being emptied out in the back, and Greenspan's remarks are mostly wishful thinking, and an attempt to stave off the inevitable.
Short term optimism doesn't indicate long term stability, at all. Neither Bush nor Greenspan have addressed the structural issues that will force further dollar depreciation...
what issues are those?
For one, our trade deficit.