05/15/09 Baltimore, Maryland The eurozone unveiled some nasty economic news early this morning. For starters, Germany dropped its first-quarter 2009 GDP number… a 3.8% contraction, worse than anticipated, and the worst since ze Germans starting keeping track in 1970. On an annual basis, that’s a whopping 6.7% contraction, another German record.
Over the last three quarters, the German economy has erased all GDP gains made since 2005.
Soon after, the EU statistics agency revealed a 2.5% quarterly GDP contraction. For the whole year, that’s a 4.6% plunge… both numbers are EU records, too.
These ugly numbers are putting pressure on the euro today, and helping keep the dollar afloat. The euro fell over a cent on the news and now trades at $1.35. And since the euro is the most heavily weighted currency in the dollar index, the greenback measure is up a few tenths of a point, to 82.5
Ian Mathias
Ian Mathias is the managing editor of Agora Financial’s Income Franchise, where he writes and researches about retirement, dividend and fixed income investing. Much of his work is featured in The Daily Reckoning and Lifetime Income Report – Agora Financial’s flagship income investing advisory.
Previously, Ian managed The 5 Min. Forecast, a fun, fast-paced daily look into the future of global markets and macroeconomics. He’s also worked in public relations, where media outlets like Forbes, AP, Yahoo! and MSN Money have syndicated his writing. If he’s not at work, you’ll probably find Ian on a bicycle, racing up and down the “mountains” of Baltimore County. Ian has a BA from Loyola University in Maryland.
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So the money-change trade IS relative after all?!…
Not for me, because I have Gold, Silver, Whiskey and Cigarettes!!!
Suckers!!
Hahahahahhahahaaaaaaa!!!
Mr Obama needs to appoint a dollar Czar and it could rhyme with car Czar. I worry about the mumber of Czers in the Government that Mr Rahm Emanuel can manage. Czers should have there on money so we do not have to pay them. Good thinking Emanuel. I know you can make money but do you know how to save.