It seems to me that the approach to dealing with the crisis of debt and sagging economy is somewhat different in the U.S. then it is in the European Union, viz., the U.S. seems much less interested in austerity measures than the Europeans. That, in the long run, i would think, should be supportive of the Euro and non-supportive of the Dollar. Though i anticipate near term Euro weakness, in the long run, assuming the E.U. does not completely unravel, it seems as though Trichet and company will not out cheapen Bernanke and company.
Though with a U.S. election coming up there is a mad dash to appear fiscally responsible, in reality the sky's the limit for U.S. spending and borrowing. Consequently, the U.S. market should wend its way to the moon along a staircase of inflation. (Obviously I am not part of the "it's 1930 all over again crowd.") So far that's just what we see --never mind those absurdly contrived official inflation figures-- Euro/USD up, market up, Euro/USD down, market down. How long can it continue? Who knows? But i can tell you this: Unlike Argentina, who had to temporarily halt the presses, the U.S. is unlikely to run out of paper on which to print Dollars.
Though with a U.S. election coming up there is a mad dash to appear fiscally responsible, in reality the sky's the limit for U.S. spending and borrowing. Consequently, the U.S. market should wend its way to the moon along a staircase of inflation. (Obviously I am not part of the "it's 1930 all over again crowd.") So far that's just what we see --never mind those absurdly contrived official inflation figures-- Euro/USD up, market up, Euro/USD down, market down. How long can it continue? Who knows? But i can tell you this: Unlike Argentina, who had to temporarily halt the presses, the U.S. is unlikely to run out of paper on which to print Dollars.
