Text 511, 41 rader
Skriven 2009-10-14 01:18:34 av Michiel van der Vlist (2:280/5555)
     Kommentar till en text av Robert Bashe (2:2448/44)
Ärende: The Euro
================
Hello Robert,

On Tuesday October 13 2009 07:43, you wrote to me:

 MV>> That is what you keep saying, but there are many counter examples
 MV>> of where something that came down, *stayed*  down. Look at the
 MV>> South African Rand and the British Pound. The Pound Stirling was
 MV>> worth about 10 DM in the sixties. Now it is what? About 1 Euro? A
 MV>> more than four fold decrease in value. It is unlikely to ever go
 MV>> up to the level of the mid sixties. The RSA Rand has made an even
 MV>> more dramatic fall.

 RB> And neither of the two countries has an economy even approaching that
 RB> of the USA, which is still the largest in the world.

Yes, it is still the largest economy in the world. But for how long? There was
a time when the sun never set on the British Empire. It once WAS the largest
economy in the world. Well, that is history. Empires come and go.

 RB> As much as I share your concern, I don't think the two examples you
 RB> cite are comparable.

I think they are very comparable. RSA once was the largest econmy on the
African continent. The British empire once was the largest economy in the
world. And some day in the not too distant future there will be a day when we
say that the USA once WAS the largest economy in the world.

 MV>> So maybe the Dollar will go up some day. Or maybe it won't...

 RB> That's the way I see things too, but I'm somewhat more confident than
 RB> you.

"Confidence" depends on from what side of the fence you are looking at things.
I am confident that the Euro will show no big fall relative to the Dollar anny
more in the foreseeable future.


Cheers, Michiel

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