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Looks like the euro is really tanking and going into the drink. So much for the vaunted euro.

Can't wait to land in any one of those countries and start spending on smokes using the ol'

"green back". The euro was way to high and could not sustain that ungodly high level (130).

I'm sure it will drop even further as more and more of the weak countries get exposed

further in terms of bad financial management. Certain countries are living well beyond

their means and this will only add to the many other problems Europe has.

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rotfl.gif

Nice to see that the printing of Trillions of dollars now passes as solid economic management lol3.gif

There is always a price to pay. You either pay for it now or later.....but you will pay. It does not matter what the country/region is.

Yes, I expect us Yanks will be seeing a payday soon enough. China will want to collect one day.

No ROTFLOL here.....

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Yes, I expect us Yanks will be seeing a payday soon enough. China will want to collect one day.

No ROTFLOL here.....

And that's no cowpoop.gif

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The price of goods and services will allow the dollar in Europe to go further after

the conversion rate. I think states payed a price a few year back and made some

changes that was realistic. Again cwertain countries in Europe won't are are unwilling

to make any changes. They want to keep their status quo which is driving them

into the swamp. Right pay now or pay later and it looks as if certain few in Europe

want to pay later or not at all!

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What has history taught us about Governments printing too much money to solve financial problems? Well...Weimar Republic 1920s, Great Depression 1930s, Adolf Hitler 1940s. That's right friends...military involvement is one sure way to right financial problems. Sadly, I add, there's always a cost to bear.

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Maybe we should make "Obama" a banned word around here

It seems to start too many arguments

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The weak euro reflects the weakness in the european economies, but the strong dollar does not necessary reflect a strong US economy.

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Why is dollar written in capital and euro not?

Anyway, I think some need an thorough Econ crash course. The currency market doesn't work like a football game.

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The weak euro reflects the weakness in the european economies, but the strong dollar does not necessary reflect a strong US economy.

Strong currencies are a twin edged sword, particularly when the strength is artificially engineered.

Good = Strong currencies developed via strong current account, low/no debt, good balance.

Bad = Strong currencies developed via low interest rates and pump priming + interest rate increase speculation. In effect you dangle the carrot of cheap money only to delay the pain of increased interest rates upon a population borrowing cheap money that they cannot afford in normal circumstances.

The above is way too simplistic. There is a myriad of micro/macro economic fundamentals at play and each country has a different mix.

For the US however there is a concern. The growth in exports/manufacturing gets pummeled by a high $ and lower domestic growth due to higher interest rates in the coming years. Confidence takes a significant hit. back to square one.

We all need a strong Europe/US/China. No one can go it alone.

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Maybe we should make "Obama" a banned word around here

It seems to start too many arguments

I'm all for that - automatically delete every post with that word in it since it always is bashing in one direction or another.

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just an element of the condescending tone

Please tell me you weren't expecting a thoroughly balanced discussion of this topic on a cigar board? The most important internet maxim? Don't feed the trolls.

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Hang the sense of it and keep busy ! - Wise man to young man

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I'm not sure the dollar could ever be strong enough to offset tobacco taxes in other countries. Unless you're after rare/special/aged boxes, there will still be better options than going abroad to buy cigars. Good time to travel otherwise, though.

Of course Europe has some problems contributing to a lower euro. But we (the US) are $18 TRILLION in debt, and keep printing money. Our house isn't exactly in order, either. The US, China and Europe all depend on each other economically. So it's not in anyone's interest to see any of them fail. The provincial nature of economic discussions is becoming more and more outdated everyday.

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I'm still shopping in Europe like crazy - that's all I know :P

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I'm still shopping in Europe like crazy - that's all I know tongue.png

+1

People get so emotional about their money and monetary policy. Right now, for the next 10 seconds, the dollar is stronger than it used to be. I am not in a position to change that, so I will just surf the wave for now and enjoy the ride. All the major currencies get their turn.

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I'm not sure the dollar could ever be strong enough to offset tobacco taxes in other countries. Unless you're after rare/special/aged boxes, there will still be better options than going abroad to buy cigars. Good time to travel otherwise, though.

Of course Europe has some problems contributing to a lower euro. But we (the US) are $18 TRILLION in debt, and keep printing money. Our house isn't exactly in order, either. The US, China and Europe all depend on each other economically. So it's not in anyone's interest to see any of them fail. The provincial nature of economic discussions is becoming more and more outdated everyday.

Best house in a bad neighborhood pretty well sums up the USD relative strength against the EURO. The US Treasury will be tightening short term rates sooner than the ECB because our economic crisis is further in the rear view mirror than Europe's. Put another way, the US entered their economic downturn before Europe entered their's and is further along on the path to recovery- it's really all about economic cycles. Put yet another way, the US stopped loosening economic policy before the ECB, which just recently announced another round of economic stimulus (read- money printing.)

The anticipation of the US raising interest rates before the ECB is the main driving force in the current USD strength vs. the Euro. Additionally, the USD has softened recently against the EURO. Perhaps the USD got a little ahead of itself.

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It's back down to $1.06

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This goes to show that you can't bet against the dollar for long and win! US interest rates are still hovering at all time lows, and the dollar is still so strong. The US can get away with printing tons of money because there is an unending demand for dollars as the US dollar is needed to purchase oil from OPEC nations. This was an ingenious deal Richard Nixon negotiated with the Saudis whereby the US protected Saudi Arabia, and the Saudis only accepted US dollars for their oil.

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Europe just needs to pull an " Obama". Just pump your economy full of funny money. Then you can fine citizens for not having health insurance and give free health care to illegal aliens and career welfare recipients.

you do realize that immigrants do not qualify for benefits right? No citizenship = not eligible. You do know that many vets are on welfare right? Don't you think the vets have earned those benefits?

Sent from my iPhone using Tapatalk

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