Posted on 03/15/2008 9:21:18 AM PDT by Jordi
The U.S. economy lost the title of "world's biggest" to the euro zone this week as the value of the dollar slumped in currency markets.
Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro.
"The curious outcome of breaching this latest milestone is that the size of the euro zone's annual output has now exceeded that of the U.S.," the economics department of Goldman Sachs, the Wall Street investment bank, said in a note to clients.
Taking official estimates of 2007 GDP -- $13,843 billion for the United States and 8,847 billion euros for the euro zone -- the economy of the latter passed the United States once converted into dollars, shortly after the euro topped $1.56.
The dollar sank to $1.5688 per euro late in European trading hours on Friday, at which rate the euro zone's 2007 GDP equates to $13,880 billion.
The 2007 GDP estimates are as published by the U.S. Commerce Department's Bureau of Economic Analysis and provided to Reuters on request for the euro zone by Eurostat, the European Union's statistics office.
Soros rejoices....
Frickin democrat tools....
Explain please?
I still don’t see how devaluing the dollar helps our economy when it essentially does nothing but prop up artificially expensive industries creating under the weight of anti-competitive, socialist unions. And those of us who aren’t propped up by those unions are seeing our real earnings being eaten away day by day with the increasingly weak dollar.
So the economic power of 15 countries exceeds (temporarily) that of the US? An entire continent manages to slip by a harried America and this is considered news?
:%s/creating/creaking/g Typos...grrr...
Euroland is not a country. Might as well throw China, India, Japan, and Korea into the Greater Asia Co-prosperity sphere and call that a country.
Does this mean that the Europe gets to defend itself and finance the UN now?
It’s nonsense. You can’t compare the size of different economies by relying on the exchange rate. The exchange rate goes up and down daily, but the size of the economy does not.
“I still don’t see how devaluing the dollar helps our economy when it essentially does nothing but prop up artificially expensive industries creating under the weight of anti-competitive, socialist unions.”
If we weren’t in such a mess, that would be funny. It’s all the evil union’s fault huh?
You clearly haven’t been paying attention. Does the name “helicopter Bernanke” mean anything to you? The devaluing of the dollar is being down to prop up the banking industry, (I believe that is non union).
America's economic might is slipping...and it's largely because of NAFTA, making our money worthless abroad so our union-saddled industry can scarcely compete abroad, sending all of our dollars to our avowed enemies in China, and then we send millions of dollars to Islamic regimes that can't wait to get the chance to lop our heads off, and we refuse to do anything about the illegal invaders that are destroying our nation from within.
This globalist horse$#!+ has got to stop.
I believe the Eurozone is roughly the same size and population as the United States.
they would love it if it were so.
As for "helicopter Bernanke," feel free to enlighten me. I am, as Ross Perot would say, all ears.
May you rot in hell for your activities.
If the goes from 100 Yen = 1 USD to 95 Yen = 100 USD it takes fewer Yen to buy the same US goods.
This increase US exports and raises US GNP.
Provided their's continuing demand for US goods in Japan, in this example.
Of course, it doesn't do the US consumer much good. And many so-called US products are no longer made in the US, so who knows what a weak domestic currency really means in todays market.
In fact, it’s larger in area and more populated.
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