Strong euro

Discussion in 'Classic Menswear' started by FCS, Dec 8, 2003.

  1. FCS

    FCS Senior member

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    If the Euro staying at, or appreciating beyond, this current level, do you guys expect a sharp jump in the prices of fine clothings?
     


  2. jcusey

    jcusey Senior member Dubiously Honored

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    I've already seen some price appreciation on some brands. I would imagine that I'll see some more if the exchange rate stays as it is.
     


  3. vero_group

    vero_group Senior member

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    With interest rates down so low for so long and the federal politicians spending so much of our money on social and defense programs, we're going to start to see inflation in the prices of many items, with or without the Euro appreciating further. There's just too many dollars being pumped into the economy right now for it not to happen in 2004 and/or 2005.

    Whatever you do, don't buy any bonds right now.
     


  4. FCS

    FCS Senior member

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    Ehm, doesn't that mean gazillion budget deficits for the next ten years or so? Never in American history you had a war and a tax cut at the same time, not to mention the jump in non-defense spending. One way or the other it's going to put huge pressure on the USD. And if China is still stubborn to peg its Renminbi at its current level, that means the Euro is going to bear the brunts, disproportionally. Not good to the European economy, and not to my wardrobe too.

    I'll be very sceptical to go long in bonds too.
     


  5. T4phage

    T4phage Senior member

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    Yes, but a strong Euro is great for us here in Europe (in terms of buying American stuff). My cartons of Reeces pieces, and Ghiradelli chocolated (for my wife) is now about a fifth cheaper..
     


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