Bank of Israel Buys Dollars

[admin]

He is supposed to represent Israel's interests? He's just a CFR person who happened to also be Jewish and "made aliyah" just to get his position. He never even moved to Israel until the day before he entered office.

Bank of Israel Buys Dollars

(IsraelNN.com) The Bank of Israel purchased dollars on Thursday as the shekel reached 3.35, its strongest trading level against the dollar in over a decade.  Manufacturers and exporters have pressured Bank of Israel head Professor Stanley Fischer to do what he can to keep the exchange rate from falling further.

Bank of Israel officials would not say how many dollars they had purchased, and Finance Ministry representatives did not comment on the move.  Fischer and other bank officials had stated earlier that they did not plan to intervene in the decrease in the dollar’s value.

[cloudberry]

I have no training in economics but I've watched the dollar and yen sink against the euro for the last two years.  Forget pips, the euro is up 20% against the dollar now.  That means American goods are cheap in the EU and we aren't exactly jumping to buy EU.  How long can this last?  I finally read Sarkozy in France talking about the overly strong euro being problematic on Reuters today.

So my question is, isn't it smart to buy the weak dollar before it's corrected?

[Ambiorix]

I have no training in economics but I've watched the dollar and yen sink against the euro for the last two years.  Forget pips, the euro is up 20% against the dollar now.  That means American goods are cheap in the EU and we aren't exactly jumping to buy EU.  How long can this last?  I finally read Sarkozy in France talking about the overly strong euro being problematic on Reuters today.

So my question is, isn't it smart to buy the weak dollar before it's corrected?

What guarantees you that it will not inflate even more?

[MassuhDGoodName]

cloudberry:  "...So my question is, isn't it smart to buy the weak dollar before it's corrected?

Ambiorix:  "What guarantees you that it will not inflate even more?"
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Ambiorix's question is also the answer...

The dollar's free fall is the correction.

It will continue to fall until the paper it's printed on is more valuable as toilet paper than it is as currency of exchange.

[Ambiorix]

cloudberry:  "...So my question is, isn't it smart to buy the weak dollar before it's corrected?

Ambiorix:  "What guarantees you that it will not inflate even more?"
-----------------------------------------------------------------------------------------
Ambiorix's question is also the answer...

The dollar's free fall is the correction.

It will continue to fall until the paper it's printed on is more valuable as toilet paper than it is as currency of exchange.

Well , let's all start buying up the world's toilet paper reserves then!!!

[cloudberry]

What guarantees you that it will not inflate even more?

Nothing.  I didn't know there were ever such guarantees.  I just know the EU recognizes how it's causing them a problem in trade and for some reason Japan is going with a weak yen and not yet trying to correct it.

Don't expect answers from me.  I'm all questions on this one.  I would be surprised if the dollar were allowed to turn into monetary toilet paper.  That would tick off China to no end and many others.  Thinking of anyone deeply invested into the health of the FCD, too.

Charmin rocks!