Have you ever observed the US Dollar versus the Euro (or British Pound)?



If you bought anything in USD or invested in property in the USA 4-5 years ago you basically lost 50% of it now....

It is really weird.....I wonder whether it will rise again someday or whether this tendencey is basically more or less forever.

The original reason why the USD was strong in the first place, is that lots of people from abroad kept part of their money on USD bank account as they didnt trust their own currency....or as the interests rates where/are higher there.

This was before the Euro though. I think lots of people from Japan etc.. now rather have an Euro bank account as all the EU countries together are stronger and more stable then a single country - even if one country has a bad time, the other countries offset against it.

But peple investing in the Euro also means less investment in the USD - and the US economy is completely dependent n foreign capital.....

I am not a specialist, but is it possible there will be an economic disaster in the USA soon ?

dont worry about american dollar because iraq war has created a huge budget deficit in america as it was extremely expensinve war. FED (american central bank) is trying to attract financial investments to america in order to compensate that deficit. and FED is trying to decrease dollars value. idont think NO ONE will let american economy down as world economy still depending on american economy. if american economy would collapse, then the world economy goes into a crises.

euro is still strong because European central bank follows strict rules without untying them.

do follow funds if you have investments. because these fonds are cotrolling the world economy these days.

According to Robert Newman's A History Of Oil the USD has been so strong because most of the trade around the world, particularly with oil, has been done with USD, even between Europe and Africa. The decline of the dollar has to do with the oil selling nations switching to to Euros, causing everyone to sell the dollars back to buy Euros.

Hm....but who would invest his money in the USD if it has lost 50% of its value in recent years? I personally wouldn't as I think it is even more risky to invest in real-estate in the USA then gambling with stocks....even if the house prices rose by 10% in 5 years you woud still loose more then the prices have gone up.

I don't think the majority make ethical decisions when it comes to investing...they just look at the risk and the potentil of growth....otherwise we would not have problems with 3rd world countries and famines.

It would be cool if someday the exchange rate of the USD and Euro was fixed to 1:1, i.e. 1 USD = 1 Euro and to couple the USD to the Euro some day similiar to how other currencies are couple to the USD (the Bahamian dollar?)

If you fancy I found Robert Newman History of oil on google video.
He discusses USD v Euro about halfway through.
http://video.google.com/videoplay?docid=7374585792978336967

LMFAO

Getting worthless, its been worthless for ages now toby, buying in america is freaking awesome, so long as customs and excise dont stamp on your parade

Nearly two years ago, i bought the BEST CPU on the market from america, it would have cost me £800 in the UK, i got it for £450, i was proper chuffed.
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