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Dollars to Euros

Kevin

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I have been hearing alot about Euros lately. how do i setup a bank account in euros living in the us> thanks in advance
kevin
 

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CarrieW

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you cant as far as I know do that. only way I would imagine would be to open an account in europe somewhere.

what is it you need euros for? are you thinking of forex trading?
 

MJ DeMarco

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You can open up a brokerage account (Ameritrade, Etrade) and buy shares of the FXE. Its a EURO<>US ETF. In fact I've been loosely going in-and-out of the FXE ... last week I sold at 148.20 -- a week earlier bought at 145.20 ... made $3K in one week and the whole process was stupid simple since I set up Triggers for the sell and the buy.

For liquidity purposes, a real Forex account is the best. But if you're looking simply to buy and hold, the FXE will suffice.

Ill buy again when it gets into the 145's -- it seems to be waffling between 145 - 149.
 

randallg99

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just my 2 cent tidbit here for long term macro thinking- the Euro can only do as well as the US$... remember that currency trading is a zero sum game: at the end of the day, the currencies are all pitted against each other thus the cummulative values remain constant and European economy is dead meat if the US economy continues to slide... the currency game is really headlined by gold vs. US$ and/or yuan vs. US$.

you will need a sharp eye for bond trading to win this game to determine how much the yuan climbs against the US$.

my opinion is while trading Euro can be profitable, long term speculation of buying Euro means you are aligning with US$ at this juncture.

if anyone here has a subscription to the Atlantic Monthly, please refer to the state of the nation article regarding the Chinese ownership of the US$/treasuries for probably one of the best primers regarding the dynamics of US$ currency ... I wish I can post it here, but I cant access the site.
 

rxcknrxll

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I've thought about this also. Maybe I misunderstand the OP, but my opinion is that the dollar will continue to sink. It makes sense to go on making money of course. But I'd rather earn in a currency that is as strong as possible. As a US citizen, is there a reason I shouldn't or cannot legally target clients overseas and charge for products and services in euros? Are there any hangups to anticipate? I mean, any dollars I have are being converted into another form as soon as I get it anyway. Why not just get it in Euros to begin with...a currency I'm currently comfortable holding for a least a little while?

My current financial situation is solid. I have enough income that I'm basically not working for more income at all; everything I earn is going straight into my investment plan. So basically: earn money directly in currencies outside the US, and keep them in that form until I put them into gold or whatever else it is I'm buying at the moment. Thoughts?
 

rxcknrxll

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just my 2 cent tidbit here for long term macro thinking- the Euro can only do as well as the US$... remember that currency trading is a zero sum game: at the end of the day, the currencies are all pitted against each other thus the cummulative values remain constant and European economy is dead meat if the US economy continues to slide... the currency game is really headlined by gold vs. US$ and/or yuan vs. US$.

you will need a sharp eye for bond trading to win this game to determine how much the yuan climbs against the US$.

my opinion is while trading Euro can be profitable, long term speculation of buying Euro means you are aligning with US$ at this juncture.

if anyone here has a subscription to the Atlantic Monthly, please refer to the state of the nation article regarding the Chinese ownership of the US$/treasuries for probably one of the best primers regarding the dynamics of US$ currency ... I wish I can post it here, but I cant access the site.
I agree that economies tie into one another. But financial policy differs from one sovereignty to the next. Just because the dollar crashes does not mean the euro will crash.
 

AlwaysCurious

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currency trading is a zero sum game: at the end of the day, the currencies are all pitted against each other thus the cummulative values remain constant
this is definitely not true, since right now new money is pumped into the markets like there is no tomorrow, and most of it is US$...
and European economy is dead meat if the US economy continues to slide.
and this, I believe, is also a little exaggeration. Personal debt and savings are in a much better condition in good ol' europe, so I'd be surprised if things get worse than in the US. But for every two analysts you get four opinions these days...
 

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You can get a liberty reserve account if you have a business and have people pay you in euros/usd/gold.

The euro is going down. Probably parity by end of 1st or second quarter.

Going top take a major screw up in the US to stop it.

BTW The yen is smokin hot right now. kickin both their arses.
 

rxcknrxll

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You can get a liberty reserve account if you have a business and have people pay you in euros/usd/gold.

The euro is going down. Probably parity by end of 1st or second quarter.

Going top take a major screw up in the US to stop it.

BTW The yen is smokin hot right now. kickin both their arses.
Euro's goin down in reference to what, the dollar? Maybe today, but the general trend on the dollar is down. You're dead right that the yen is smokin right now. If I spoke the language, I'd be talking them right now. most euro spenders are english speaking; that's the plus for me as far as doing business with them. no tax weirdness with earning in alternate currencies? i'm not taking any income from these endeavors right now. still workign out the details.
 

randallg99

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this is definitely not true, since right now new money is pumped into the markets like there is no tomorrow, and most of it is US$... ...
new money pumped into the markets further skews the dollars value so the dollar is and always will be pitted against other currencies to determine its own intrinsic value. my statement is absolutely correct.




and this, I believe, is also a little exaggeration. Personal debt and savings are in a much better condition in good ol' europe, so I'd be surprised if things get worse than in the US. But for every two analysts you get four opinions these days...
As bad as American banks got nailed, the European banks have already succumbed to their plank walks...

largest banks of England, Germany, Belgium, Iceland among others have already been nationalized. now people are holding their breath for Swiss and Scandavian countries to follow suit....

the real kicker is that european banks & IBs are leveraged at higher rates (up to 50x) vs. Americans at 8x-12x

go look at unemployment histories for europe vs. USA.... chart is here:
http://www.ncpa.org/pub/ba/ba475/ba475.pdf

a little insight to european problems:
Explaining European Unemployment

if what you say is true, then you should be buying loads of european equities with US dollars but I am not sure where you get the impression that Europe is in better shape, but if you have data that proves my thinking and data are wrong I'll be the first to buy you a beer .
 

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fanocks2003

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I have been hearing alot about Euros lately. how do i setup a bank account in euros living in the us> thanks in advance
kevin
There is "multi-currency accounts". Discuss it with your local bank.
 

rxcknrxll

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new money pumped into the markets further skews the dollars value so the dollar is and always will be pitted against other currencies to determine its own intrinsic value. my statement is absolutely correct.






As bad as American banks got nailed, the European banks have already succumbed to their plank walks...

largest banks of England, Germany, Belgium, Iceland among others have already been nationalized. now people are holding their breath for Swiss and Scandavian countries to follow suit....

the real kicker is that european banks & IBs are leveraged at higher rates (up to 50x) vs. Americans at 8x-12x

go look at unemployment histories for europe vs. USA.... chart is here:
http://www.ncpa.org/pub/ba/ba475/ba475.pdf

a little insight to european problems:
Explaining European Unemployment

if what you say is true, then you should be buying loads of european equities with US dollars but I am not sure where you get the impression that Europe is in better shape, but if you have data that proves my thinking and data are wrong I'll be the first to buy you a beer .
I'd love someone to explain to me how the US dollar is not going to sink like a stone. Seriously; I'm totally willing to admit I may be wrong about this. Also, I'd be the last to argue that Europe is in good shape right now, but financial policy seems to differ significantly from that of the US. Other places are in deep recession, but the difference is that their governments are not fighting it; it's OK to be in a recession. Here, we're fighting the recession tooth and nail. We're printing trillions of dollars that we have no way of paying back. How can that not destroy the value of the dollar in relation to other currencies?
 

AlwaysCurious

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@randallg99:
Maybe I misinterpreted your statement, so I try to clarify: At any given time, the value of any currency is rated relatively to all other currencies. The actual exchange rates represent an equilibrium that permanently levels out. But this is not constant over time, especially if you talk about "the cumulative value" which I interpreted as "the sum of the individual intrinsic values" of the currencies. And the intrinsic values do change over time to a great extend. That's why I objected against your statement above.

Now, the intrinsic value of a currency is determined by several factors including the money supply. If this supply is massively increased, I cannot help but think that the value will drop if demand doesn't grow as well. However the exchange rate of the US$ is rated against the intrinsic value of all other currencies, that may have the same economic problems right now. So the only way for the dollar to rise relatively to the EUR is when the intrinsic value of the EUR falls even faster. Of course I cannot foresee the future, but I rate it as a good sign for the EUR that contrary to the FED the ECB is not at a zero interest rates policy, yet. This is a nice read regarding this topic: ECB to Enter ZIRP?

No bank in Germany has been nationalized. At least none that I am aware of. There has been an increase of governmental control for Commerzbank and several Landesbanken, however only the first is a private one and it is intended to be a limited action for two years at max.
[Edit: Darn, forgot about Hypo Real Estate, but well...]
The Landesbanken are public institutes anyway. Moreover the governmental influence upon the bank sector was always quite high even before the crisis - around 45% according to Wikipedia. So the recent actions won't change that much. In France the banking sector is less affected than in Germany, don't know about England. Sure Iceland and Hungary are nearly bankrupt, but that won't affect the Euro zone that much.

However, you are right about the bank's leverage, that's why I don't invest in this sector right now. Let's see how this plays out...
 
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randallg99

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I think we are both in agreement that the US dollar is only as good as another currency is bad....

regarding european banks.... many of them already have large government ownership. RBS in the news big time this week already had over 50% gov't ownership.... a few more euros or pounds, then the bank becomes the government's anyway....
 

Colbey

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RBS is partly owned by the government because it has been bailed out since the start of the credit crunch, recent talks about help for RBS is in addition to £20bn it has already received from the British taxpayer. Prior to the credit crunch British banks were mostly privately owned.
 

AlwaysCurious

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Just got another view from Black Swan Capital

Our guess is that China, Russia, Brazil, and India, affectionately known as the BRICs are
change‐agents for the rest of the emerging market (EM) world. And our next guess is
that banks with the most lending to the EMs could some under some serious pressure
given the seeming drought of liquidity flowing their way. And by extension of these
guesses, we guess there will be multiple EM defaults sometime in the future. And by
use of real logic, one would expect those holding most of the paper that may be
defaulted upon would feel some pain.
Thus, the fact (or statistic we saw) that European banking holds (incredibly) an
estimated $4.4 trillion of the $4.8 trillion in loans to EMs suggests to us that more
SUBSTANTIAL pain could be heaped on the Eurozone banking system adding to the
already tremendous stresses we know are in the system. Thus, the idea that the euro
will challenge the US dollar for world reserve currency is a “rational†thought bubble
that could pop in a very big way.
Interesting times. I guess there will be much turmoil in the currency markets for quite a while. Lots of opportunities...
 

randallg99

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Just got another view from Black Swan Capital


Our guess is that China, Russia, Brazil, and India, affectionately known as the BRICs are
change‐agents for the rest of the emerging market (EM) world. And our next guess is
that banks with the most lending to the EMs could some under some serious pressure
given the seeming drought of liquidity flowing their way. And by extension of these
guesses, we guess there will be multiple EM defaults sometime in the future. And by
use of real logic, one would expect those holding most of the paper that may be
defaulted upon would feel some pain.

thanks for the link.... that looks like a good service, how are you doing with it?

Russia and Brazil have been making money hands over fists with their oil exports.... now that oil pricing is pressured down, you can bet your bottom dollar, ruble or real that Russia & brazil are going to feel squeezed every which way.

....

knowing that it's absolutely a traders market, I'm still not too sure if anyone has the cojones to trade euros against the US dollar... Spain's unemployment at 13.9% with more to come. UK and other countries hitting multi year highs with more expected.

“This is going to continue because there’s no motor in the Spanish economy that allows us to see an improvement in the labor market,†he said.

Bloomberg.com: News


and now... even worse news for Europe? looks like theres policy pressure to bring UK rates to zero....
Bloomberg.com: News


we've already seen an amazing unprecedented flight to US treasuries just this year and we'll probably see it again
 

AlwaysCurious

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Actually, the Black Swan newsletter is just one piece of information in my daily readings, but this article caught my eye, due to this thread. Their style is a little cynical but the information itself sometimes gives quite a view from unexpected directions. I think it differs enough from other news sites to be worth a read.

And yes, I'm shorting the pound a lot against $ and €, lately.
 

StreetsofSilver

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There is a bank called Everbank in Florida that allows you to hold Euros in a cd. It is FDIC insured. The other option is to go offshore. It is pretty easy to open a Euro denominated bank account in Panama. Just make sure that you get an attorney if you are planning to do offshore.
 

randallg99

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excellent article about world view of the US$

http://www.nytimes.com/2009/01/30/business/worldbusiness/30davos.html?_r=1

<<<While the dollar’s status as refuge in a time of turmoil should prevent that kind of sell-off for now, a number of financial specialists warned that if fundamental factors like the lack of American savings and bloated budget deficits did not change, the dollar could eventually fall sharply .>>>
 

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randallg99

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looks like the us$ is where the trade is leaning these days since apparently there's no other safe refuge in the world (maybe besides gold, but that's a weird scenario playing out in a deflationary environment)

history has a funny way of repeating itself this is a must read if you trade financial stocks and fx ... the part that stands out the most to me from the article:

>>> According to estimates published in the Vienna financial press, were only 10% of the Austrian loans in the east to default in coming months, it ‘would lead to the collapse of the Austrian financial system.’ The EU’s European Bank for Reconstruction and Development (EBRD) in London estimates that bad debts in the east will exceed 10% and ‘may reach 20%.’ <<<

"Next Wave of Banking Crisis to come from Eastern Europe" by F. William Engdahl. FSO Editorial 02/18/2009
 

randallg99

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I think we're about to watch Europe blow up.... the USA was leveraged thick, but Europe was much more leveraged and it's unwinding now in a big way. Lot's of articles out there regarding currencies... and saw that Japan's economy is starting to crack again....

looks like US$ is going to be the creme of currency for a while
 

randallg99

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from Feb 09
I think we're about to watch Europe blow up.... the USA was leveraged thick, but Europe was much more leveraged and it's unwinding now in a big way. Lot's of articles out there regarding currencies... and saw that Japan's economy is starting to crack again....

looks like US$ is going to be the creme of currency for a while

as usual, I was waaaaaaaay too early to the party and would have lost a lot of money if I invested with my convictions.

if anyone remember's the LTCM crisis from 1998, you'll recognize the reference in john maudlin's report that was emailed tonight:

>When Russia defaulted on its debt and sent the world into crisis in 1998, they had total debt of only €51 billion. Greece now has €254 billion and added another €8 billion this week, and needs to add another €24 billion (or so) later this year. That's a debt-to-GDP ratio of over 100%, well above the limit of the treaty, which is 60%.
Greece benefitted from being in the Eurozone by getting very low interest rates<

Eurozone is sitting on a very sharp fence and the very simplest trickle of bad news can send it on a downward spiral. There's already division among the fractions with Germany's outspoken banter and Irelands, Italys and Portugals set of problems are getting worse.

US$ continues to be refuge and safe haven and will be for quite some time.
 

GlobalWealth

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There is a bank called Everbank in Florida that allows you to hold Euros in a cd. It is FDIC insured. The other option is to go offshore. It is pretty easy to open a Euro denominated bank account in Panama. Just make sure that you get an attorney if you are planning to do offshore.

Actually, for US citizens it is quite difficult to bank offshore. It is possible, but many banks are shutting their doors to Americans. My banking friends in Switzerland now won't take an American customer if you walked in their front door with a suitcase filled with $100 bills.

There are options, and that involves opening an offshore entity. We have been using Belize IBC's or Nevis LLC's for our clients and then using a couple of different banks. they are willing to accept these entities as clients even though ultimate ownership is American. At least for now.
 

GlobalWealth

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US$ continues to be refuge and safe haven and will be for quite some time.
The problem is the US is essentially bankrupt, but of course we are just the best of the bad. The PIGS are weighing heavily on the euro right now especially since Greece can't seem to get anyone to loan them money and Spain's unemployment is about 20%. I think the USD is doomed, but short term, it will still be the stronghold.

I do believe we are witnessing a historic shift in world power right now though. I think in our lifetimes we will see the end of the US as the dominant world superpower, much like GB in the early/mid 20th century. If history is any indication, no country remains the dominant force forever and I doubt the US is any different.
 

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