comet241 wrote:
im glad to see that you have no background whatsoever in finance at all. So what if the dollar goes down a little? You think that the value of the dollar hasn't varied widely in the history of the united states?
It means nothing because the Euro is overvalued anyway and the investors are only going to get stuck in the ass. The only way that the Euro can save itself is if the EU acts as one instead of many, but it wont, and the euro will fall, just watch. why do you think several countries have kept their own currency? britain and sweden to name two. dont let some italian bankers fool you into believing the value of the dollar is going down, its currently undervalued, thats all. let the free market show you the way.
The Euro is overvalued, as is the Pound. The Dollar is not going to lose any significant ground, both because of the strength of our market, and the fact that China and Japan are still buying our Treasury Bonds.
The countries you talked about have kept their currency because it is significantly stronger than both the Euro and the US Dollar, the two leading currencies in use throughout the world. It has nothing to do with those countries believing the Euro will fail, which it won't. I expect to see the Euro lose a few points, along with the Pound, while the US dollar gains a few. As a US citizen, I am more worried about China and Japan (but mostly China) buying up our national debt than worrying about Italians divesting their bonds.
As for the free market, come off that one man, there is no such thing as a free market. It would be great if there was, but that's just a phrase economists and politicians throw around to make people think they have the people in the best interest ("its a free market, you know like freedom."). The reality is there is no unseeing hand guiding the market, there is no free market, and the idea of supply and demand only goes so far.