November 16, 2004
MAKE UP YOUR MIND
EU keeps pressure on U.S. to curb deficits (Paul Geitner, Associated Press, November 16th, 2004)
European Union officials kept up pressure Tuesday on the United States to curb its deficits to help bolster the sagging dollar amid fears a strengthening euro would stifle Europe's fledgling economic recovery. [...]With the dollar slipping toward its record low of $1.30 to the euro again Tuesday, ministers urged Washington to do more than just talk to bolster the greenback.
Luxembourg's Jean-Claude Juncker, who takes over as head of the 12-nation euro group in January, said he wanted to see "a real policy of a strong dollar."
His comments followed those late Monday from French Finance Minister Nicolas Sarkozy, who told reporters: "Now it's up to the Americans to respond."
Funny thing about the Euro. It is bad if it’s weak and worse if it’s strong.
It's important that one of the top priorities of W's second term be the support of Europe's fledgling economic recovery (under other circumstances, I would actually believe that).
It's not certain that, structurally, Europe can have an economic recovery. The euro's strength is all political.
Hopefully, we shall "respond" as old Europe has responded to Iraq. Let them eat "oil for food."
Posted by: genecis at November 16, 2004 8:11 PMIf a strong Euro and weak dollar stop economic growth in Europe, it means that there's no domestic growth in Europe.
Why should the US stifle their exports and reduce foreign tourism in America, by strengthening the dollar, for the sole purpose of subsidizing Euro-zone economic growth ?
Posted by: Michael Herdegen at November 16, 2004 9:17 PMActually, as a percentage of GDP, our deficit isn't that far off of Europe's and is about equal to France and Germany's. Our national debt, as a percentage of GDP, is slightly smaller than Europe's.
Posted by: David Cohen at November 16, 2004 11:16 PMThe Europeans must be afraid of something if a "stong" currency is giving them fits.
Posted by: jim hamlen at November 16, 2004 11:19 PMGermany's deputy finance minister is even criticizing our tax cuts 'for the rich.' This is a case of growth envy. Old Europe has painted itself into a terrible corner -- virtually zero growth, high unemployment and that demographic time bomb ticking beneath the social welfare system. They have to make some very hard choices, and none of the coalitions in power seems to have grown spines recently.
Posted by: Dave Sheridan at November 17, 2004 5:09 AMFrance and Luxembourg. Yes, the President will certainly repeal his tax cuts due to their "pressure". How can he possibly stand up to such fire?
Posted by: Bob at November 17, 2004 9:49 AMWasn't it an effort by the US FED to help the Bank of England the trigger for the Great Depression?
Bah. We figure out what suits us, and then we'll do it.
Posted by: Ptah at November 17, 2004 1:37 PM