Where is the Euro headed?

[SD Transplant]

Buffet on CNBC last night had a differnt view – when asked the same question. He mentioned specifically that the FED & Govt is paying only lip service to the problem (stron fiscal/monetary policy – a strong $), but their action have not change at all in the last 4-5 years. As a result, he (Buffet) forecasts the $ to drop significantly. He mention the value of 0.6 EURO / $1.00 – that’s a scary image. Yes, I travel to Europe every year – my trip will be more expensive (I have relatives/family, so I save on some hotels/meals – yet the trip is getting harder to achieve).

[blahblahblah]

They’re gonna take it as low as they can. We owe tons of money to the rest of the world, and the easiest way to get out of paying it back is to reduce the value of the currency itself. Devaluing the currency also helps politically with the housing situation — since voters don’t want to see their home prices go down, a devalued currency will help keep them from falling too fast or too far (assuming we get wage inflation at some point, which of course might not happen). 90% of Americans never leave the country anyway so they won’t notice until the Yuan gets revalued (if it ever does) since everything they buy is Chinese. Oh and of course it makes the few exports we still have cheaper, so it’s good for business. Devaluing the dollar is a win-win-win for the fed and the US gov, so expect them to do it. The only one that might not work out in their favor is the housing situation, but they don’t care about a bunch of dumb people that borrowed too much money anyway.

[blahblahblah]

They’re gonna take it as low as they can. We owe tons of money to the rest of the world, and the easiest way to get out of paying it back is to reduce the value of the currency itself. Devaluing the currency also helps politically with the housing situation — since voters don’t want to see their home prices go down, a devalued currency will help keep them from falling too fast or too far (assuming we get wage inflation at some point, which of course might not happen). 90% of Americans never leave the country anyway so they won’t notice until the Yuan gets revalued (if it ever does) since everything they buy is Chinese. Oh and of course it makes the few exports we still have cheaper, so it’s good for business. Devaluing the dollar is a win-win-win for the fed and the US gov, so expect them to do it. The only one that might not work out in their favor is the housing situation, but they don’t care about a bunch of dumb people that borrowed too much money anyway.

[blahblahblah]

They’re gonna take it as low as they can. We owe tons of money to the rest of the world, and the easiest way to get out of paying it back is to reduce the value of the currency itself. Devaluing the currency also helps politically with the housing situation — since voters don’t want to see their home prices go down, a devalued currency will help keep them from falling too fast or too far (assuming we get wage inflation at some point, which of course might not happen). 90% of Americans never leave the country anyway so they won’t notice until the Yuan gets revalued (if it ever does) since everything they buy is Chinese. Oh and of course it makes the few exports we still have cheaper, so it’s good for business. Devaluing the dollar is a win-win-win for the fed and the US gov, so expect them to do it. The only one that might not work out in their favor is the housing situation, but they don’t care about a bunch of dumb people that borrowed too much money anyway.

[blahblahblah]

They’re gonna take it as low as they can. We owe tons of money to the rest of the world, and the easiest way to get out of paying it back is to reduce the value of the currency itself. Devaluing the currency also helps politically with the housing situation — since voters don’t want to see their home prices go down, a devalued currency will help keep them from falling too fast or too far (assuming we get wage inflation at some point, which of course might not happen). 90% of Americans never leave the country anyway so they won’t notice until the Yuan gets revalued (if it ever does) since everything they buy is Chinese. Oh and of course it makes the few exports we still have cheaper, so it’s good for business. Devaluing the dollar is a win-win-win for the fed and the US gov, so expect them to do it. The only one that might not work out in their favor is the housing situation, but they don’t care about a bunch of dumb people that borrowed too much money anyway.

[blahblahblah]

They’re gonna take it as low as they can. We owe tons of money to the rest of the world, and the easiest way to get out of paying it back is to reduce the value of the currency itself. Devaluing the currency also helps politically with the housing situation — since voters don’t want to see their home prices go down, a devalued currency will help keep them from falling too fast or too far (assuming we get wage inflation at some point, which of course might not happen). 90% of Americans never leave the country anyway so they won’t notice until the Yuan gets revalued (if it ever does) since everything they buy is Chinese. Oh and of course it makes the few exports we still have cheaper, so it’s good for business. Devaluing the dollar is a win-win-win for the fed and the US gov, so expect them to do it. The only one that might not work out in their favor is the housing situation, but they don’t care about a bunch of dumb people that borrowed too much money anyway.

[Anonymous]

…like spain’s economy is doing well… I don’t know. Me thinks the EU is going to have a rude awakening. One thing for sure, U.S. goods definitely are going to seem a lot cheaper.

Agreed. If you want to see a place that has been overbuilt, look no further than the south of Spain. Cranes almost everywhere. Some of the projects were so huge, it is hard to believe that anyone would think there would be people to buy all the condos. There was a 1/2 built, 20 shop mall that was supposed to be supported by a handful of vacation condos. The building quality was so poor there, that my uncle could not hang ceiling fans in his condo because the ceilings could not support them…

[Anonymous]

…like spain’s economy is doing well… I don’t know. Me thinks the EU is going to have a rude awakening. One thing for sure, U.S. goods definitely are going to seem a lot cheaper.

Agreed. If you want to see a place that has been overbuilt, look no further than the south of Spain. Cranes almost everywhere. Some of the projects were so huge, it is hard to believe that anyone would think there would be people to buy all the condos. There was a 1/2 built, 20 shop mall that was supposed to be supported by a handful of vacation condos. The building quality was so poor there, that my uncle could not hang ceiling fans in his condo because the ceilings could not support them…

[Anonymous]

…like spain’s economy is doing well… I don’t know. Me thinks the EU is going to have a rude awakening. One thing for sure, U.S. goods definitely are going to seem a lot cheaper.

Agreed. If you want to see a place that has been overbuilt, look no further than the south of Spain. Cranes almost everywhere. Some of the projects were so huge, it is hard to believe that anyone would think there would be people to buy all the condos. There was a 1/2 built, 20 shop mall that was supposed to be supported by a handful of vacation condos. The building quality was so poor there, that my uncle could not hang ceiling fans in his condo because the ceilings could not support them…

[Anonymous]

…like spain’s economy is doing well… I don’t know. Me thinks the EU is going to have a rude awakening. One thing for sure, U.S. goods definitely are going to seem a lot cheaper.

Agreed. If you want to see a place that has been overbuilt, look no further than the south of Spain. Cranes almost everywhere. Some of the projects were so huge, it is hard to believe that anyone would think there would be people to buy all the condos. There was a 1/2 built, 20 shop mall that was supposed to be supported by a handful of vacation condos. The building quality was so poor there, that my uncle could not hang ceiling fans in his condo because the ceilings could not support them…

[Anonymous]

…like spain’s economy is doing well… I don’t know. Me thinks the EU is going to have a rude awakening. One thing for sure, U.S. goods definitely are going to seem a lot cheaper.

Agreed. If you want to see a place that has been overbuilt, look no further than the south of Spain. Cranes almost everywhere. Some of the projects were so huge, it is hard to believe that anyone would think there would be people to buy all the condos. There was a 1/2 built, 20 shop mall that was supposed to be supported by a handful of vacation condos. The building quality was so poor there, that my uncle could not hang ceiling fans in his condo because the ceilings could not support them…

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