People are converting from cash supplies of dollars to cash supplies of Euros.
No mention of electronic supplies.
People are converting from cash supplies of dollars to cash supplies of Euros.
No mention of electronic supplies.
and then what? it costs too much to change them to dollars, so you have to go to Europe to spend them!





I believe that Deo is referring to Euro denominated money market funds, CD's etc. and other 'cash equivalents', not the paper money itself. The bet is of course that in addition to the interest paid, from the standpoint of a saver/investor who earns money in US dollars and spends money in dollars, the Euro denominated instruments will provide an exchange rate related capital gain as the US dollar weakens.
For example, if you had invested in a 1 year US dollar CD a year ago, when it matures tommorow you'll get your $10,000 back plus say $500 in interest earnings at 5%. On the other hand, if you put that same US$10,000 into a Euro CD, you'd only earn $270 in interest at 2.7% but instead of getting US$10,000 principal back you'd get US$10,700 because the Euro exchange rate had moved from 1.24 to 1.31 in the meantime.
Personally, I'm getting back into gold rather than currencies because not only will a capital gain result from a weaker dollar vs other currencies, but an additional capital gain should result as EVERY country keeps printing way too much new money (except Thailand, and look what just happened to them !).
Wow, things are getting scary these days. It used to be the almighty dollar ....now, not so much.
The dollar is become less and less desirable, the housing market is not so strong, the general economy is great.....I'm worried about the stock market. I know it *appears* to be doing good, but that could all change in an instant.
(just click to donate FREE food to those in need...REALLY!)
Defnitely....but soooo many people seemed to have jumped onto that bandwagon with everything they have. The foreclosure rates are skyrocketing and I worry about what will happen another year or two down the road. Housing values are going down (or staying relatively the same) and interest is going up, causing a LOT of foreclosures and bankruptcies. (At least from what I've seen around me)
(just click to donate FREE food to those in need...REALLY!)




I don't accept money that is not real american money or fake money i.e. funny money.
I Love Life!!!!!!!!!!!!!!!!!





^^^ actually it's only 12% over the past year --->
But GOLD has appreciated nearly 30% in the past year ... which implies that the EU is inflating the Euro just as America is inflating the US dollar, only with Euro inflation occuring at a slower relative rate !
Bookmarks