Menu

Home › Forums › Housing › 50 point cut › The dollar is at a 30 year

September 20, 2007 at 1:50 PM #85324
patientlywaiting
Participant

The dollar is at a 30 year low.

Saudi Arabia is set to break the dollar peg. Will oil go to $100/barrel. We might see $4/gallon gas next year.

Oh, well,there goes our Christmas trip to London. I guess our family will have to cut back to take a car trip to Solvang instead.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aA14lYfIaUho&refer=home

Saudi Arabia may drop its currency’s link to the dollar. The nation is likely to keep the peg, an adviser to King Abdullah said. The euro rose above $1.40 for the first time since its introduction. The Canadian dollar earlier equaled its U.S. counterpart.

http://calculatedrisk.blogspot.com/2007/09/saudi-arabia-refuses-to-cut-rates.html

The Greenspan conundrum was that long rates didn’t rise at the Fed Funds rate was increased. Bernanke’s conundrum may be that long rates don’t fall (or maybe even increase) as he lowers the Fed Funds rate!