Euro and carry-trade

[scholarsOrAcademics]

the Euro is falling against the Dollar. Is there a conscious intent of Paulson's to affect the attractiveness of the Euro, to weaken its appeal as a safe haven?

[Joanne98]

1. I don't think so. I think they worry more about the yen.

[scholarsOrAcademics]

2. Iran?

It seems the news was that Iran, for one, was beginning to switch to the Euro.
And, the European Common Market was beginning to take a common political orientation.
When the British pound falls, how much does the dollar rise?

[gravity]

3. The dollar is the safe haven

The Euro is pretty damn safe too, but it was overvalued during the last couple of years based on purchasing power parity.

Paulson made the dollar more attractive by taking the actions necessary to prevent the financial system from going under, while the ECB has been slower to react. As bad as things are in the US, Europe might get hit worst.

[scholarsOrAcademics]

4. still a relevant question. Ultimate control

"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world."

Henry Kissinger
from a google
and, purchasing power parity? implies equilibrium not overvaluing.

[Art_from_Ark]

5. The dollar is "attractive" to me

but in a different way. The dollar's value vis-a-vis the yen seems to keep falling (it's now at its lowest point since the mid-1990s), such that now I can buy about 8% more dollars with my yen than I could just one month ago.