19 Kasım 2004 Cuma

The Dollar Continues To Drop

The dollar has sunk to a new low against the Euro. While this is good for our exports, it means that interest rates will continue to stay low so that bank account has become even more worthless from an investment perspective. It also hurts the missionaries living in Europe as their already small salary buys them even less. When I spent six months in Europe, a bad dollar has a conversion rate of 1 euro = $1.21. It is now up to 1 euro = $1.3074! This has hurt European exports to the point that the European bank is considering a joint effort with the Japanese bank to purchase dollars to boost the value. President Bush blames it on the lack of economic growth in Europe due to government restrictions. Europe blames trade and budget deficits. I wonder if all of the media about the war and the economy are to blame. I thought that war was supposed to bring about an economic boom as it did in World War II. Then again, as posted previously, jobs are on the rise so maybe we'll see a stronger dollar in the future.

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