Friday, April 11, 2008

Euro against Dollar

The mother of all conflict of interests is brewing. While the United States sees its exports soar on the back of a falling dollar, the European Union is concerned about the euro's strength biting into the competitiveness of its businesses. Martin Feldstein thinks the dollar must fall further ( see previous post) and Christian de Boissieu, economic adviser of French president Nicolas Sarkozy, begs to differ.

The interviewer asked Boissieu if he would be in favor of putting a growth mandate into the ECB?
He gets a straight answer:

"No, I think it is not necessary to change the treaty of Maastricht which states in article 125 that price stability is the number one priority of the ECB."

Why is nobody asking if U.S. officials could agree on dropping the Fed's bogus mandate of stimulating growth? In my opinion this bogus mandate is at the core of the current financial sickness.

click for video:

source: Euro Stength to Halt Growth
Christian de Boissieu, chairman of Conseil d'Analyse Economiqe

read also: Dollar must fall further - Feldstein

read also: Alan Greenspan - the charade continues

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