Euros and Dollars and Yen, oh boy

["dmschanoes" <dmschanoes@xxxxxxxxxxxxx>]

Several times we have discussed/argued about the "threat" the stronger Euro
poses to the US, and entertained arguments about the replacement of the
dollar by the Euro.    I've always felt that there is at least one group
absolutely dead set against both the weaker dollar and its replacement by
the euro, and that group is the Euro zone countries themselves..

The WSJ of 10/21 reported that euro zone trade surplus fell by 50% between
July and August 2003 as exports slumped.  Exports to the US  through July
2003 were 9% below the same period 2002.  Euro zone manufacturers blame the
stronger euro, but then we all know what chronic complainers the bourgeoisie
are..

Manufacturing orders in Germany in August climbed a meager .1%, while GDP
declined for the second straight quarter.

Meanwhile, the FT of the same date reported on a "positive" outlook for
Central and European economies, of course positive is a relative concept
since GDP for the region in 2002  measures 77% of the 1989 GDP. If the euro
continues to strengthen against the dollar, this region will then become
more permeable to exports from the US, and less of a "home market backyard"
for the euro zone.

dms



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