Tuesday, November 27, 2007
How Low Can You Go?
Two articles in the French press give you an idea of just how weak the dollar really is right now. According to Le Monde, in the twelve months between August 2006 and July 2007, Southeast Asian and Japanese investors -- including central banks -- bought 32 billion Euros worth of French government bonds, compared to only 14 billion Euros they invested in American government debt. The article quotes an official from the Chinese central bank reaffirming that the dollar is and will remain their principle reserve currency. A demonstration of faith that didn't prevent China from reducing its position in American debt since March.
Meanwhile, to add insult to injury, Marianne reports that with the dollar now at only 66% of the Euro, outsourcing telecommutable jobs to the United States has become an attractive option for French CEO's. Not, of course, as attractive as outsourcing them to Russia, India or Brazil. But, hey, it's a start.