September 4, 2015
On a recent trip to Turkey I was astounded to find amazing Greek ruins in the Pamukkale area. That area is famous for its lime-deposited white hills and travertines, but what I found even more interesting were the Greek ruins beyond the hills and the spring-heads.
We sometimes forget how vast the Greek empire was at one time and there are so many remnants of those ancient times outside of Greece. I immensely enjoyed walking among the ruins and getting up close to the architecture and the detailed stone work. At times I was the only person walking in sections of the ruins, just imagining what the place must have looked like in those ancient times.
May 4, 2010
The last time the euro was below $1.30 USD was over a year ago. It's below $1.30 once again. This despite the fact that the consensus had been for the US dollar to continue to be under pressure and see further declines. The fundamentals in the US haven't really changed much. There's still a monster-sized deficit and growing and there's even talk about the US spending all its income servicing debt in a few short years.
What's changed is the financial fiasco unraveling in Greece and gripping Europe by proxy. That has the investors scurrying and flying to the US dollar. It's a short term relief for the dollar where in normal conditions (in my opinion) should be trading at parity with the euro.
For now the market is nervous because it doesn't know how deep the rabbit hole in Europe goes and as usual the governments aren't saying much, lest they spook the markets even more. That has opened a short-term advantage for the dollar.
But my feeling is that the favorable period for the dollar will soon pass as Europe bites the bullet and faces the issue head-on, instead of wavering and hoping that the situation will correct itself. If the US hasn't addressed its deficit issue by then (and I see no evidence of that), the dollar will resume its slide and who knows how far the American rabbit hole will go.