Euro becoming to valuable?

[ojibweindian]

While we're worried about a dollar that's losing purchasing power, our brothers and sisters on the other side of the Atlantic are beginning to fear that a strong Euro will make their exports too expensive, triggering economic woes of their own.

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=ab3e9dc1-0c21-492b-8b8b-0950f6fb58d1

PARIS (Dow Jones)--The European Central Bank again struck out at politicians and industry leaders who warn that the soaring euro will cost European jobs by making exports too expensive in foreign markets.

[zhan]

Hrm. Maybe we can turn on all our manufacturing again and become the EU's China :heh

[Issachar]

EU's China? Interesting thought ....... but .... The US cost of living is going up so much (unless you discount everything you need; i.e. food, medical, energy, housing ...) That it would be hard for Europe to find a deal here. :) What the EU central bank needs to do is lower their interest rates to, say ... 2%. Ya, that's it! 2%! Then when things even out a bit, they could come closer to matching the US. Ignoring that fact that prices would become unbearable across America and Europe ... it just might work. (Hey, we live in a world where economic data that is inconvenient is ignored anyway.)

Issachar

[ojibweindian]

The irony of the story is poetic; the Euro is so strong that their exports are too expensive to buy, and the dollar is getting so weak that we can't afford to buy anything.