Saturday, July 3, 2010

Euro Reaches 6-Week High Against US Dollar

Terrible economic news last week had the euro end Friday up against the US dollar to its highest level in 6 weeks.

The US economy lost 125,000 jobs in June, the first monthly drop in six months, and combined with other bad economic news, has investors and consumers concerned over whether or not we're in a recovery at all, or the huge amount of money thrown at the economy only masked its inherent weaknesses.

The euro rose to $1.2553 in afternoon trading in New York from $1.2480 late Thursday. Right after the Labor Department said that 125,000 jobs were lost in June in the U.S., the euro topped off at $1.2613, its highest level since May 21.

While some have interpreted this as a nod toward avoiding the worst in Europe, it's highly doubtful that's the case, and there's a lot to play out there before we're through.

Thursday, July 1, 2010

United Nations Wants One Global Currency - Controlled by IMF

A United Nations report today called for the abolishing of the U.S. dollar as the global reserve currency, and replacing it with the International Monetary Fund’s special drawing rights (SDRs).

The UN doesn't want to replace with a basket of currencies either, but only on on IMF-controlled SDR’s.

The report also said, “A new global reserve system could be created, one that no longer relies on the United States dollar as the single major reserve currency.”

Some believe the US dollar is being attacked for the purpose of exploiting the weakening economic situation in order to institute a global currency issued by the IMF.