| Well this information has been coming out a bit at a time over the last few weeks. I wasn't sure it would develop into anything significant, so haven't been posting about it. But the problem does not seem to be turning around, so I figure it's time to bring this discussion to the table. What do you think the causes are for the decline of the Dollar, and what do you see as being the biggest impact that will be derived from it?
Dollar woes worsen as rival currencies hit new heights
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The dollar tumbled to new all-time lows against the euro, a 12-year nadir against sterling and a near five-year trough against the yen, buckling under the weight of the US twin deficits.
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Economists see the dollar's decline as inevitable in order to alleviate the massive US current account and budget deficits, by reducing Americans' appetite for imports and giving a boost to exports.
[...]
A strong euro makes exports from the 12-nation single currency area less competitive overseas, threatening to stifle the region's already weak export-led economic recovery.
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 So this is directly related to the Bush Administration's shopping spree? | |
