The dollar has taken a quick 2 per cent dive against the Euro, and the EU is circling the wagons

[DFW]

4. I suspect that the drop in the dollar's value against the Euro (now 3 per cent at 1.11) will mean nothing to most

To many Americans (admittedly, being from the South, I get this more than some in other parts of the country), a drop in the dollar's value against the euro will baffle them, leaving them to ponder why in the world this will have any meaning whatsoever to them.

Living in Europe, of course, everyone knows why it's important for world trade. I suppose one must keep in mind that if there is a stifling of world trade with the USA, this will be of lesser significance to those Americans who have never had contact with "the outside world." If EU products are cut off from the US market, and US products are cut off from world markets, demand for US Dollars on the foreign exchange markets will plunge, and the dollar's desirability (and thus its value) along with it.

If the interest rate for the US dollar is equal to the Euro, or falls below it and stays there, this will seem like the calm before the storm. We'll be at 1.15 before the end of next week. Since I am paid in dollars and live in euros, this would be equal to a 10% reduction in my take-home pay within 8 weeks. I have already written to 5 members of Congress (1 House, 4 Senate) that I know to not expect any huge contributions from me in the near future if I have to live with that kind of a pay cut. That is the kind of language they all understand.