Quote:
Originally posted by currencia
Rumors from Aussie spot marketmakers say that the USA has interveened in the market when eurousd tried to retrace south.
A good strategy to reduce imports into the USA and increase exports out of the USA. would that help balance the trade deficit and create jobs in the USA?
|
It is possible that US intervention occured.
The weakness of the dollar is dramatically destabilizing the EU.
There is even talk of disbanding the EU over Germany and France financial crises.
This action by the US is delberate, as the EU is trying to sway OPEC into converting their oil futures contracts to Euro rather than dollar.
Do you feel that this is a coincidence?
Bush announces "Axis of Evil" during January 2002 speech.
Claims Iraq, N. Korea, Iran, Russia, and China are all members.
He later backed off on China and Russia.
Iraq converted all assets to Euro in 2000 when the Euro was valued at $.88 USD. This included their USD $10 bn. Oil for Food account. Assets of which were held in a French Bank.
N. Korea converted to Euro in Dec. 2001
Iran is now contemplating Euro conversion.
Russia has converted half their assets to Euro and is
presently wooing the EU with lower cost Natural Gas contracts.
China has converted huge portions of their reserve assets to Euro, but is also maintaining dollar assets in order to keep "favored nation" status
As far as the second part of your post.
There will not be any significant job creation in the US. Mainly due to the high cost of labor. That is why all the IT jobs have gone to India, the ME, or Philipines.
An Information Tech. Mgr. with an MBA living in India, makes about $5-10 thousand USD per yr. Which is fine because of the very low cost of living.
The same mgr. in the US was making $75,000 USD per year.
This is not lost on major corporations.
IBM, Intel, Microsoft, and many other mega firms have IT companies in these foreign countries.
All at the expense of US jobs.
That is why the computer tech labor market crashed here.
There is no way to bring these jobs back.
The US is no longer a producer nation.
Very little is truly "Made in America" anymore.
We are more of an assembler nation dependent on imports and foreign money to survive.
Not a very good situaton to be in.