Hey guys. Pay attention to this. The talking heads on Television will probably try to spin stories like this one to disguise the demise of the dollar. Europe’s inflationary policies do not help us, but they serve as a red herring for the propagandists.
The euro tumbled as debt woes spread around the euro zone from Greece, where pledges of austerity and fiscal rigor failed to stem growing fears that the Continent’s economic recovery could be derailed.
The euro fell as low as $1.4505 on Tuesday, its lowest level since early October. New worries about Austrian banking also roiled markets, with rumors of trouble at an Austrian lender with shaky investments in Eastern Europe following Monday’s surprise nationalization of another Austrian bank at the behest of the European Central Bank.
(Read more from online.wsj.com)
Patrick Barron’s comments:
The Fed and the ECB are trying the old “beggar thy neighbor” policy, whereby each tries to cheapen its own currency in order to spur exports to its neighbor. Great plan. Now both currencies can crash together. Misery loves company, I guess.