Wednesday, December 15, 2004

Bush supports strong dollar

"WASHINGTON (AP) President Bush has pledged to work with Congress to assure markets the U.S. supports a strong dollar." This type of statement signals the end of the rising euro. Evidently, the US has decided that europe has suffered enough. This is like the US attempting to extend on olive branch to europe. I think that the US has really been controlling the rising euro behind the scenes to punish europe and to raise US exports. Too much dollar weakness will be detrimental in the long run. (One of those problems has been China). So now it's time to reverse course a bit. If the dollar gets stronger soon, then I think this validates my point. (If not, oh well, wouldn't be the first time I've been wrong. ;) )

No comments: