Ever noticed how "Euro" and "Peso" rhyme?

Yeah, like "dollar" and "connard".

Quand je veux, je peux être aussi con qu'eux !

Quand je veux, je peux être aussi con qu'eux !

T'es loin du compte, IHad...

By flyindutchman
On Sat Jul 09, 2005

....grenoble...ryhmes with chernobyl,

www.fuckfrance.com . . .

Yeah,

Like....

"I am from france."

and

"I shit in my pants."

pay no mind to the moron frogs Vdva
their just bitter because they have been oh so wrong about so many things over the last year about their own and America's economy.

right about now according to them last year the euro rules the world and replacing the dollar in central banks at an alarming rate , no one will finance our debt ,the dollars history BLAH BLAH BLAH .SHHHHHHH

their just bitter because they have been oh so wrong about so many things over the last year about their own and America's economy

Even worse for them, they wake up every morning and realize it wasn't just a horrible nightmare: they really are French!

I miss these:

Amazing what happens after a couple of hurricanes, an oil crisis, and a quagmire in the Middle East.

--Sternboden

Who is the pilot?

New low

--Sternboden

1 EUR = US$ 1.29184 as of 2005.04.12 21:39 Universal Time (GMT).

Now

1 EUR = US$ 1.19525 as of as of 2005.10.22 01:14 Universal Time (GMT).

Currency markets respond to the same supply-demand dynamic that applies to real goods. If the real inflation adjusted interest rate of a trading nation is higher than its counterparts' currencies, that currency will attract more buyers. What this means is that the Euro is strong relative to the U.S. dollar because real European Union interest rates are higher than are the corresponding rates in the U.S. Thus, people sell dollars to buy Euros to park the big moolah in European bank accounts.

The most serious question we have here is a bit of macroeconomic error on the part of the Brussells economics' apparatchiks. If they lowered interest rates it would, in concert with other measures, lower the cost of capital in Europe and theoretically stimulate investment and spending. Obviously this isn't happening. Naturally, there are other factors involved in this currency relationship and I have offered a simplified model in order to explain what is happening.

If the United States begins to have a higher real rate of interest, because the Fed is moving (which they are)into more restrictive monetary growth, the dollar will appreciate vis-a-vis the Euro. Of course, as this happens the U.S. economy will slow down somewhat.

Which leads me to the last item on my agenda: energy prices. Because energy prices have been skyrocketing and because many businesses are at the point where they simply must pass on these costs, we are beginning to see inflation building in our economy. However, the Fed sees this happening and I do not see a repeat of the 1970's going on. Look for next year's GDP figure to drop from the 3.5% current performance to the 1.5% to 2.5% range. Evidence is already coming in to suggest that consumers are driving less and keeping their thermostats lower this Fall. The current scenario does not favor those who took high and long positions in oil and gas futures. Expect some correction as these positions have to be unwound.

"Those who do not remember history are condemned to repeat it"

1 EUR = US$ 1.29184 as of 2005.04.12 21:39 Universal Time (GMT).

Now

1 EUR = US$ 1.18178 as of 2005.11.07 04:49 Universal Time (GMT).

Not that I love kicking the french when they're down ...

Keep it real....

frederick - Oct 21, 2005

Currency markets respond to the same supply-demand dynamic that applies to real goods. If the real inflation adjusted interest rate of a trading nation is higher than its counterparts' currencies, that currency will attract more buyers.

What this means is that the Euro is strong relative to the U.S. dollar because real European Union interest rates are higher than are the corresponding rates in the U.S. Thus, people sell dollars to buy Euros to park the big moolah in European bank accounts.

What you are speaking about here it the "real interest rate", which in short is the nominal minus the rate of inflation.

You claimed this:

What this means is that the Euro is strong relative to the U.S. dollar because real European Union interest rates are higher than are the corresponding rates in the U.S.

- The theory is "correct", but unless you are implying that the US inflation is sky high in comparison to the European, your story dosent add up as a sole explanation......

The interest rate for the 12-state eurozone has been kept on hold at 2% for a long time now:

BBC - 3 November 2005

The European Central Bank (ECB) has decided to keep eurozone interest rates on hold at 2% for another month.

The move, widely expected by analysts, means the ECB has now kept rates at the same level since June 2003.

news.bbc.co.uk . . .

- whereas the US interest rate have keept rising lately, but the dollar is still weaker than the Euro.....

BBC - 1 November 2005 news.bbc.co.uk . . .

Fed raises US interest rate to 4%

The Federal Reserve has raised interest rates for the 12th time in succession.

- The US dollar is weak, beacuse the world have no trust in it anymore, as a medium of exchange....Only reason for the dollar havent crashed completly yet, is because the Asian central banks keep buying up US assets, while private investors and others run away screaming...

By the way - i like your creative skills with this one sternboden:



Add in this one though, and you might get the real picture:



This thread should have been named "The Official FF.COM Let's Follow The Crash Of The Dollar Thread" ......

1 EUR = US$ 1.29184 as of 2005.04.12 21:39 Universal Time (GMT).

Now

1 EUR = US$ 1.17841 as of 2005.11.07 14:33 Universal Time (GMT).



The Real Captain Euro.

Uncle_Meat

1 EUR = US$ 1.29184 as of 2005.04.12

Now

1 EUR = US$ 1.17841 as of 2005.11.07

Make no mistake Uncle_Meat, its the US dollar that crashed and burned. Perhaps now its regaining some of the value it lost against the Euro, but i doubt it will last for long....

Euro behave like a submartingal vs Dollard, plus a brownian
motion whose maximum variance square root is 0.2 ...

Almost Surely, Euro's mean value increases at a mininum
constant rate vs dollard.

The euro is in the midst of a high dive into an empty pool.

The day you'll understand the meaning of what is a
submartingal, i'll explain you how and when you
can apply chernov theorem allowing to upper
bound the probability of deviation of a random
process from it's mean value/behavior ... It's
likely you don't see what kind of application one
can make of such mathematical theories -
assurences, risks evaluations for example ... -,
but you should first try to understand why one
can't divide a complex number by zero before
trying to make your point about measure theory
and probabilities.

Euro behave like a submartingal vs Dollard, plus a brownian
motion whose maximum variance square root is 0.2 ...

Almost Surely, Euro's mean value increases at a mininum
constant rate vs dollard.

In the time it took you to post this the euro lost another $0.0012 to the dollar

1 EUR = US$ 1.17830 as of 2005.11.07 15:04 Universal Time (GMT).

The day you'll understand the meaning of what is a
submartingal, i'll explain you how and when you
can apply chernov theorem allowing to upper
bound the probability of deviation of a random
process from it's mean value/behavior ... It's
likely you don't see what kind of application one
can make of such mathematical theories -
assurences, risks evaluations for example ... -,
but you should first try to understand why one
can't divide a complex number by zero before
trying to make your point about measure theory
and probabilities.

I love seeing the financial markets batter probability theory onto a fine pulp day after day.

But, please, continue ...

Euro May Decline for a Fourth Day as French Rioting Escalates
Nov. 8 (Bloomberg) -- The euro may weaken for a fourth day against the dollar in Asia on concern rioting that has escalated in France over the past week is spreading to Germany.

Social disorder may damp economic growth and deter investment in euro-denominated assets. The riots, which entered their 11th night, mark the longest stretch of urban violence in Europe's second-largest economy since the student uprising in 1968.

``The riots are spreading across France, bringing about huge adverse effects on the euro,'' said Michiyoshi Kato, a vice president of foreign exchange sales in Tokyo at Mizuho Corporate Bank Ltd., a unit of Japan's second-biggest lender by assets. ``Acts of violence will surely continue to weigh on the euro.''

Against the dollar, the euro traded at $1.1795 as of 8:42 a.m. in Tokyo, from $1.1805 late yesterday in New York, according to electronic foreign-exchange dealing system EBS. The euro was at 138.66 yen, from 138.92. The euro may fall to $1.1760 against the dollar today, Kato said.

More than 1,220 people have been arrested and about 4,700 vehicles have been torched since Oct. 27, when gangs of youths began their rampage in the Paris suburbs. In Berlin, five cars were burned by arsonists who may be attempting to copy rioters in France, police in the German capital said yesterday.



To contact the reporter on this story:
Kosuke Goto at at kgoto2@bloomberg.net

nice to see this thread still alive and well