Euro still statistically overvalued relative to the US dollar by 20%

Euro still statistically overvalued relative to the US dollar by 20%


With the Euro at $1,35 +/- $0.02, real value, or in this case Euro
overvaluation can be found in Purchasing Power Parity, explained
simply thus at http://preview.tinyurl.com/79d4zEvleths :



"The Euro corrected lower in December but remains significantly
overvalued against the US Dollar with prices still over 20% above the
PPP-implied “fair” exchange rate......"

This makes us richer than you, redneck.


"PJ Odonovan" a écrit dans le message de groupe de
discussion :
...
Euro still statistically overvalued relative to the US dollar by 20%


With the Euro at $1,35 +/- $0.02, real value, or in this case Euro
overvaluation can be found in Purchasing Power Parity, explained
simply thus at http://preview.tinyurl.com/79d4zEvleths :



"The Euro corrected lower in December but remains significantly
overvalued against the US Dollar with prices still over 20% above the
PPP-implied “fair” exchange rate......"

"abelard" wrote in message
...
On Sat, 20 Mar 2010 09:18:50 -0700 (PDT), PJ Odonovan
wrote:

Euro still statistically overvalued relative to the US dollar by 20%

i'm working on 30%

With the Euro at $1,35 +/- $0.02, real value, or in this case Euro
overvaluation can be found in Purchasing Power Parity, explained
simply thus at http://preview.tinyurl.com/79d4zEvleths :

"The Euro corrected lower in December but remains significantly
overvalued against the US Dollar with prices still over 20% above the
PPP-implied "fair" exchange rate......"

indeed...an excellent time to buy usa assets

Depends what you mean by assets.

abelard writes:

indeed...an excellent time to buy usa assets

Why? Is China selling them?

On Sat, 20 Mar 2010 18:21:22 +0100, abelard
wrote:

On Sat, 20 Mar 2010 09:18:50 -0700 (PDT), PJ Odonovan
wrote:

Euro still statistically overvalued relative to the US dollar by 20%

i'm working on 30%

With the Euro at $1,35 +/- $0.02, real value, or in this case Euro
overvaluation can be found in Purchasing Power Parity, explained
simply thus at http://preview.tinyurl.com/79d4zEvleths :

"The Euro corrected lower in December but remains significantly
overvalued against the US Dollar with prices still over 20% above the
PPP-implied “fair” exchange rate......"

indeed...an excellent time to buy usa assets

The Economist's Big Mac Index for last 16 July, when the euro was
at $1.36, indicated the euro was overvalued by 26%.


--
************* DAVE HATUNEN ) *************
* Tucson Arizona, out where the cacti grow *
* My typos & mispellings are intentional copyright traps *

abelard writes:

i suggest you think before you post...
is that even within the distant bounds of possible realities?

Yes, it is. China is holding a great deal of U.S. debt. If it decides one day
to stop loaning money to the U.S. to keep the latter afloat, bad things will
happen.

On 20/03/10 22:42, in article ,
"Mxsmanic" wrote:

abelard writes:

indeed...an excellent time to buy usa assets

Why? Is China selling them?


Because it has too many. The problem is selling them for what?
If they dump too many that will effect the value of what
they are buying.

The exchange dynamics between the Euro and dollar are
mostly market controlled. For years, people have
complained that the dollar is overvalued, especially
since the balance of payments deficits were pouring
huge amounts of dollars into various central banks
who, in exchange had to convert some of these into
local currency, inflating them. The current value
of the Euro is considered by some as to too high based
on relative purchasing power or cost of living.
Others shrug their shoulders and say, "what a loaf of
bread costs in France and what it costs in the USA
have nothing to do with the market value of the
Euro vs the dollar".

We all have problems adjusting to the realities of the
market. Somebody from Montana visiting NY City is
shocked by the prices. Currently Americans
visiting Paris, have the same impression. Now
the big spending tourists in Paris are the new
rich Chinese. Tomorrow it will be people visiting
from India.

Yes evleth we are all aware you know best, now take your pink pill and back
to beddie with your jiggy toy.



"Earl Evleth" a écrit dans le message de groupe de
discussion : ...
On 20/03/10 22:42, in article ,
"Mxsmanic" wrote:

abelard writes:

indeed...an excellent time to buy usa assets

Why? Is China selling them?


Because it has too many. The problem is selling them for what?
If they dump too many that will effect the value of what
they are buying.

The exchange dynamics between the Euro and dollar are
mostly market controlled. For years, people have
complained that the dollar is overvalued, especially
since the balance of payments deficits were pouring
huge amounts of dollars into various central banks
who, in exchange had to convert some of these into
local currency, inflating them. The current value
of the Euro is considered by some as to too high based
on relative purchasing power or cost of living.
Others shrug their shoulders and say, "what a loaf of
bread costs in France and what it costs in the USA
have nothing to do with the market value of the
Euro vs the dollar".

We all have problems adjusting to the realities of the
market. Somebody from Montana visiting NY City is
shocked by the prices. Currently Americans
visiting Paris, have the same impression. Now
the big spending tourists in Paris are the new
rich Chinese. Tomorrow it will be people visiting
from India.

On Mar 20, 12:18*pm, PJ Odonovan wrote:
Euro still statistically overvalued relative to the US dollar by 20%

With the Euro at $1,35 +/- $0.02, real value, or in this case Euro
overvaluation can be found in Purchasing Power Parity, explained
simply thus athttp://preview.tinyurl.com/79d4zEvleths:

"The Euro corrected lower in December but remains significantly
overvalued against the US Dollar with prices still over 20% above the
PPP-implied “fair” exchange rate......"

The Canadian $ is higher in value than the ALLMIGHTY BUCK. as of
Friday.

And Americans think that having a high $ is a good idea.

But that's because the USA makes nothing and imports everything.

Reminder, don't have a civil war.

Though Canada only became a sovereign nation in 1867, during the civil
war period Canada had the Dollar, not the British Pound Stirling.

And because of the US civil war, the Canadian $ was worth $2.64 to
one American $.

So let that be a message to Americans who want to have another civil
war over Obama being lawfully elected.


If you want to reduce confidence in your economy, you know what not to
do.

On Mar 21, 10:09*am, Bill Coleman wrote:
On Mar 20, 12:18*pm, PJ *Odonovan wrote:

Euro still statistically overvalued relative to the US dollar by 20%

With the Euro at $1,35 +/- $0.02, real value, or in this case Euro
overvaluation can be found in Purchasing Power Parity, explained
simply thus athttp://preview.tinyurl.com/79d4zEvleths:

"The Euro corrected lower in December but remains significantly
overvalued against the US Dollar with prices still over 20% above the
PPP-implied “fair” exchange rate......"

The Canadian $ is higher in value than the ALLMIGHTY BUCK. as of
Friday.

And Americans think that having a high $ is a good idea.

But that's because the USA makes nothing and imports everything.

Reminder, don't have a civil war.

Though Canada only became a sovereign nation in 1867, during the civil
war period Canada had the Dollar, not the British Pound Stirling.

And because of the US civil war, the Canadian $ was worth $2.64 *to
one American $.

So let that be a message to Americans who want to have another civil
war over Obama being lawfully elected.

If you want to reduce confidence in your economy, you know what not to
do.

I swear one reason US companies like knitting mills, which employed so
many
people in the south ,closed was b/c of WALMART. These companies, like
Springs
Industries, maker of sheets, towels, bedspreads, ec. couldn't compete
and
are forced to close stateside mills.

You should watch a MSNBC video showing how Walmart operates.
It's all based on price point. They don't have their "Buy America "
bumper
stickers anymore that they used to give out.