The Euro's last attempt to pass 130 was beaten back...
But now it's back at 129 based on the dismal geopolitical and economic condition of the US.
With nearly three more years to go...the Bush Administration can still do a lot of damage to the dollar, as there is no sign that they "get it" yet. And Dubya & Co have been nothing but looters of the economy and the budgets since day one.
Why change now. It may in fact be too late.
Bush will kick the deficits and the dollar over to the next Democratic President.
But there could be an unpleasant change of tone after the November elections when the expected Democratic take over in the House, and possibily the Senate...gives "alternative voices" a chance to be heard.
Still a Euro at150...eventually...is not out of the question....
All that would take is gold at 800...because gold and the dollar are really mirror images of each other... Lower dollar means Higher gold. And the dollar will go now where but down in the current political climate...
Even poor Bernanke won't be able to do much...unless he raises rates to a 1980-ish 12%...which could end up being "about right" for the current conditions of the American economy.
And the expected FED "pause"....fuggetabotit! That just ain't gonna happen!
