Dollar falls to record euro low

Source: BBC World News online

The dollar has fallen to a record low against the euro and yet another 26-year slump against the pound.

With investors fearful that the ongoing downturn in the US housing market will start to slow the economy, the euro rose as high as $1.3741 on Tuesday.

The pound touched as high as $2.0274, as it continued its recent gains.

The dollar's latest fall came after the key Standard & Poor's credit rating agency said it may downgrade $12.1bn (£6bn) in sub prime mortgage debt.

SNIP

Read more: http://news.bbc.co.uk/2/hi/business/6289752.stm

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Lots more in the article about subprime mortgage lending, interest rates rises by the European Central Bank (ECB) and the Bank of England while the Fed stays at 5.25%.

Hmmm. Do you believe debt = slavery?

http://biz.yahoo.com/ap/070710/dollar.html?.v=13
AP
Euro Hits New High Against U.S. Dollar
Tuesday July 10, 11:38 am ET
By Matt Moore, AP Business Writer
Euro Soars to New High Above $1.37 Amid Worries About U.S. Economy

FRANKFURT, Germany (AP) -- The euro soared to an all-time high against the U.S. dollar on Tuesday, topping the $1.37 mark as key U.S. retailers and homebuilders lowered their growth forecasts, causing more concern about the American economy.

snip

"The dollar is a basket case," said Peter Schiff, president of Euro Pacific Capital Inc. "We are going to pay the piper for years of having the underlying fundamentals of our economy disintegrate beneath our feet."

Given the state of the U.S. economy, he said, the dollar could continue to fall in the coming years against the euro to $2.50 or even $3.

The euro hit a new high of $1.3738 before falling back to $1.3718, above the euro's previous high of $1.3682 reached on April 27 and above the $1.3623 it bought late Monday in New York.

They can't raise rates, neither can they lower them. As other countries raise their lending rates and reduce the spread, the dollar crisis will become a full blown panic. I really wonder when the Japanese are going to pull the plug on competitive devaluation, and raise their interest rates to save the yen from demise.

Right now this is a "printfest" between central banks. Japan, USA and the UK are inflating their money supplies by 13+ percent/year. We haven't this level of printing since the 1974-75 inflationary recession.

The disintegration of a major reserve currency is going to be interesting to watch, to say the least.

My guess is they'll try to bridge to 09 by printing money and fudging the stats.

They'll let the reality of the inflation tsunami hit the Democratic white house right after Gore gets inaugurated.

Nixon's ending dollar-gold redeemability in 1971 unleashed an inflationary tsunami all the way into the Carter administration. Still grinds me that Jimmy got blamed for Nixon's bonehead move.

My guess is they'll try to bridge to 09 by printing money and fudging the stats.

They'll let the reality of the inflation tsunami hit the Democratic white house right after Gore gets inaugurated.

My guess is they'll try to bridge to 09 by printing money and fudging the stats.

They'll let the reality of the inflation tsunami hit the Democratic white house right after Gore gets inaugurated.

http://finance.yahoo.com/currency/convert?amt=1&from=USD&to=PHP&submit=Convert

Heres our situation

wake up.

yet, it will be the little people that will get hit hard.