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Euro notes cash in to overtake dollar

Discussion in 'Political Discussion' started by Real World, Dec 28, 2006.

  1. Real World

    Real World Moderator Staff Member

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    This is kinda funny to me. The reason being that I've been to Italy every year since birth, so I've seen that society move from the Lira to the Euro first hand. Twenty years ago, the dollar fetched as much as 2,400 Lira apiece. During the recession of the early 90's it went down to 1,500-1,600 or so, only to march back up by the millenium. Anyhow, I used to change $100 and enjoy a massive shopping spree. A Heineken was 1,000 Lira or 50 cents American at a bar, a can of coke was 500 Lira, or a 25 cents. When the Euro came about, I got 1.27 Euro for every dollar. Not as good as the Lira, but still more for my money. That changed real quick. Now I have to dish out $1.30 to get 1 Euro. Gross. What's worse is that EVERYTHING in Italy has nearly trippled as a result of the Euro. Those Heineken's are now 2 Euro's (4,000 Lira), and the can of Coke is 1.10 Euro. Crazy. It's all funny because my cousin and his wife are here for CHRISTmas, and they are doing what I did in Italy 7 or 8 years ago. They're going on discounted shopping spree's. Boy do they love it.



    Euro notes cash in to overtake dollar

    By Ralph Atkins in Frankfurt

    Published: December 27 2006 22:07 | Last updated: December 27 2006 22:07

    The US dollar bill’s standing as the world’s favourite form of cash is being usurped by the five-year-old euro.

    The value of euro notes in circulation is this month likely to exceed the value of circulating dollar notes, according to calculations by the Financial Times. Converted at Wednesday’s exchange rates, the euro took the lead in October.


    http://www.ft.com/cms/s/18338034-95ec-11db-9976-0000779e2340.html
  2. Seymour93

    Seymour93 Rookie

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    Over in England and Wales the exchange rate is bloody awful... two dollars($) for one pound (£). Add to that your average, run of the mill lunch is twenty pounds for two people, that's 40 bucks for a fish and chips & a curry & two drinks!!!
  3. wistahpatsfan

    wistahpatsfan Rookie

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    #75 Jersey

    The Petro-dollar has been replaced by the Petro-euro. Watch as the oil producers switch to the euro one by one.
  4. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey


    Time to bend over and grab some vaseline .... we are screwed.
  5. wistahpatsfan

    wistahpatsfan Rookie

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    #75 Jersey

    You know it!
  6. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Do you have a non U.S. bashing, non Bush bashing explanation for why ?

    I am no financial expert by any means. But I did see one on CNBC a week or two ago and said the weak dollar does us little to no harm. All it does is makes overseas products more expensive and vice versa. I guess I could see that resulting in inflation here but there's no sign of that at the dollar has been weak for a long time now.

    I'm not questioning you, just wondering, because this flies in the face of what I heard.
  7. maverick4

    maverick4 Banned

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    BF, in the short term, the weak US dollar will actually help us, since our export products will be cheaper and will likely sell in larger volumes. However, long term, we are screwed if nobody wants dollars anymore.

    We have built a way of life of huge federal deficits, borrowing, and trade deficits based on the premise that countries will give us their goods in exchange for monopoly money that we print whenever we want.

    The sad fact is, if trends continue, we are going to see huge inflation and the biggest stock market crash in history somewhere in the next 5 years.
  8. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Like I said, I can logically follow the path to inflation. The debt and deficit don't worry me as they're actually in decent shape in relation to GDP. I'd like them lower but the relative amount is a lot less concerning than the actual amount.

    Biggest stock market crash in history ? Bigger than the Great Depression ? Somehow I doubt that. I used to let scare mongers worry me with lines like that but the market would always go up (over time). I do have 30% or so of my 401K in an International Fund but I'm not going to let the value of the dollar scare me into not making free money.
  9. Real World

    Real World Moderator Staff Member

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    A couple of things to ponder here. The deficit is improving. As opposed to $500 billion in the red we may only be $280 billion down :eek: Sadly, this is good news. The issue however, is the national debt, which stands at

    [​IMG]

    and counting. With annual deficits, and a national debt, the dollar suffers. As the dollar suffers, and China keeps buying up our debt, we loose strength as a nation. I'm with BF on the dollar' value, meaning, it's being weak is not that severe a deal, but I am concerned with the long term prospects if it remains weak. Also, the Euro is overvalued. If the US is able to black line it's budget come late 2007 or 2008, you'll see it rebound dramatically versus the Euro. European countries are having serious inflationary problems, along with spiralling defeicits due to pension payouts. They've got some rocky roads ahead.
  10. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey


    Mostly because of energy ... If the world accepts the Euro valuation for energy we are in trouble ... serious trouble. We used to back our currency with Gold ... now it's oil...

    As long as we have some say in Afghanistan and Iraq we have leverage for the dollar. Oil is traded with dollars ... we can buy oil with printed dollars ... euro countries have to sell goods for dollars to buy oil.

    Perhaps some shared sytem will be setup ... that could work. But if we insist on keeping oil for dollars and we fail we are in huge trouble. Saddam and WMDs and the Taliban were just pawns for what is at stake. Reason why all the hub bub by the democrats is already being reduced to a whimper.

    So as not to start an argument here ... the above post is how I see it ... and some others see it ... I don't condone or argue the above ... i merely state it as it's how i perceive things to be.

    So that's the answer ... were i President I would have dialouge with all countries and not leave us in such a precarious position re: the dollar ... but greed has a way of taking away any middle ground that might have ever existed.... we are our own worst enemy for sure.
  11. Real World

    Real World Moderator Staff Member

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    Well, there is always the Amero right?
  12. gomezcat

    gomezcat It's SIR Moderator to you Staff Member PatsFans.com Supporter

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    Welcome to my world.:mad:
  13. gomezcat

    gomezcat It's SIR Moderator to you Staff Member PatsFans.com Supporter

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    There is another short term benefit of the weak dollar and it is tourism. Someone like me, with an interest in things American and a Pats fan, would come to the US anyway. However, I would be more inclined to buy an extra item or ten from the Pats shop or wherever. There is also a big market for people who will fly to New York or wherever to take advantage of lower prices. Apparently, it was something that a lot of Londoners did this Christmas.
  14. Real World

    Real World Moderator Staff Member

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    Well, my cousin & his wife, here for the holidays from Italy, are due to leave today. They came with 2 suitcases and a carry on, and are now leaving with 4 suitcases and two carry-on's. HA! They sure love that weak dollar. I took them to a nearby outlet center in Wrenthem, MA. and they filled my Jeep with 9 bags of clothing. :eek:

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