Dollar at 1.41 to Euro. long predicted collapse begun?

[seabhcan]

The Dollar fell another cent against the Euro today to a record low of near 1.41 and to parity with the Canadian dollar for the first time since 1976. Meanwhile Fed chief says the losses from sub-prime mortgages have far exceeded "even the most pessimistic estimates".

Is this the long predicted implosion of the US economy?

[youngdan]

they havn't exceeded my most pessimistic estimates. The gold price is up a hefty 15 dollars again today

[Defeated Romanticist]

No I's say this is the ginormous deficits coming back to haunt them

[Lord of Kerry]

Looks like we'll be going Christmas shopping in the USA then!

[Ard-Taoiseach]

The Dollar fell another cent against the Euro today to a record low of near 1.41 and to parity with the Canadian dollar for the first time since 1976. Meanwhile Fed chief says the losses from sub-prime mortgages have far exceeded "even the most pessimistic estimates".

Is this the long predicted implosion of the US economy?

perhaps not an implosion, but recession in the US is not too hard to envision. What it does to world economy will have to depend on the other economic powers remaining immune to the fall in the US' mometnum. We would want China, India, Japan, Australia, Russia and the main eurostates motoring along in order for the US correction to remain in America.

[forest]

what about the dominance of the USD as a world currency in the likes of the WTO IMF OPEC etc etc any change of that diminishing

[youngdan]

Today's fall seems to be set off by the Saudis refusing to lower their rates which suggests that they are going to break their currency peg to the dollar. The dollar is going to be Northern Rocked but don't worry the economic whiz W says he is confident everything will be fine. Please, rational panic only.

[Ponzi]

what about the dominance of the USD as a world currency in the likes of the WTO IMF OPEC etc etc any change of that diminishing

The sheiks want out. This is going pear shaped quickly.

http://www.telegraph.co.uk/money/mai...cnsaudi119.xml

[Ard-Taoiseach]

what about the dominance of the USD as a world currency in the likes of the WTO IMF OPEC etc etc any change of that diminishing

The sheiks want out. This is going pear shaped quickly.

http://www.telegraph.co.uk/money/mai...cnsaudi119.xml

Yes, it seems that 1.40 was the level at which people are saying 'enough'. Does anyone have a word on what the Japanese and Chinese will do? As the two largest customers for US Treasuries, they'll have to have something to say.

[saratoga]

The Dollar fell another cent against the Euro today to a record low of near 1.41 and to parity with the Canadian dollar for the first time since 1976. Meanwhile Fed chief says the losses from sub-prime mortgages have far exceeded "even the most pessimistic estimates".

Is this the long predicted implosion of the US economy?

Hardly. The weak dollar helps their exports, and the 'credit crisis' was never big enough to threaten the overall economy.