Property Grunt

Tuesday, January 02, 2007

Why this is bad: Dollar getting kicked to the curb

Happy New Year Good People! I hope all of you had a safe and wonderful New Year. And with a New Year comes new developments.

The first development is a new series I call "Why this is bad". In this series I will present topics of interest and welcome you all to participate in a discussion of why this topic is a bad thing. Feel free to use comments or email me.

In my travels in real estate, I find that I have learned a tremendous amount just from talking to people and I would like to take this opportunity to involve more of you in my blog.

The first topic will be the ever powerful euro. According to the New York Times, that aftera series of night stands, the Central Bank is slipping out of bed with the dollar and cozying up to the euro.

Countries with large holdings of dollars in their foreign-exchange reserves are showing a new willingness to dump the dollar in favor of the rising euro.

The latest to make a major move is the United Arab Emirates, which joined Russia, Switzerland, Venezuela and others late last month when it shifted a chunk of its reserves into euros.

There have also been ambiguous signals from China about a possible pullback from the dollar, and recent word from Iran, the world’s fourth largest oil producer, that it would prefer to be paid in euros rather than the usual dollars for its oil shipment.

So feel free to comment and email. Feel free to also express your opinions if you disagree with my perspective.