First cracks in European economic edifice
As I pointed out in December, the rumors of the dollars's demise have been greatly exaggerated. My argument was that the dollar will remain a viable currency, not because of Bernanke's dubious talents, but because other currencies are in even worse shape (except China's). And now, lo and behold, the mighty Euro is about to give up the ghost.
"Feb. 7 (Bloomberg) -- European Central Bank President Jean- Claude Trichet signaled that he's open to cutting interest rates for the first time in almost five years, saying there's ``unusually high uncertainty'' about economic growth. ``As the reappraisal of risk in financial markets continues, there remains unusually high uncertainty about its overall impact on the real economy,'' Trichet told reporters in Frankfurt today after the ECB kept its key rate at 4 percent. The euro fell and bonds rose following his remarks."