Posted on 11/24/2004 9:31:29 AM PST by soccer_linux_mozilla
LONDON (AP) - The U.S. dollar sank to another record low against the euro in European trading Wednesday morning. Gold prices rose.
The euro hit a record high of $1.3167 in morning trading, then eased to $1.3150, up from $1.3085 late Tuesday. The 12-nation European currency's previous peak was $1.3105 reached Tuesday.
The recent rally has taken the euro from $1.20 about two months ago, driven primarily by concerns over the U.S. trade and budget deficits.
(Excerpt) Read more at cnn.netscape.cnn.com ...
Euro sounds close to something the Nazis would have invented IMO.
Why? Our exports are cheaper and helps cut the trade defeceit.
The oil "embargo" didn't cause inflation; it reflected it. I use the term "embargo" loosely because the Arab oil embargo actually played a very minor role in the rise of oil prices in the 1970s; the primary culprit was the declining value of the U.S. dollar.
I think we were separated at birth....
The current account deficit doesn't include the budget deficit. The current account deficit is the goods and services trade deficit, often referred to as the trade deficit. As always the trade balance is always in balance as currrent account deficit (good and services) = the capital account surplus (foreign investment)
Thanks for the correction. Wouldn't the current account deficit include that portion of the budget deficit that is cast as U.S. treasury securities purchased by foreign investors?
Well, we all know the Nazis were gay.
Nope. That's a cash inflow and therefor would be part of the capital account surplus.
Ironic that the twin deficits in part offset each other, atleast from an accounting persective.
Oliver Stone says in his movie that Alexander the Fabulous was.
Well yes, Tricky Dick taking us off the Gold Standard had a huge, devastating and immediate impact of the economy. However, the embargo did not help by increasing the marker price for Saudi Light Crude by 70%.
Aren't we all (deep down in our most suppressed inner child/feminine side) really....
European?
I've examined this before in some detail, and my estimate is that the embargo itself really only resulted in a 20% increase in oil prices. That makes sense, when you consider that 20% is probably the margin that was paid to a third-party "middleman" who dealt oil to the U.S. that would otherwise have been shipped directly here.
The class spent a great deal of time critiquing market economies and provided a solid and actually conservative view of them.
The French were not responsible for printing dollars in excess of what was there to back it at a fixed rate. Only a fool would have turned down cashing in paper on that deal...
Not me, I was born and Brooklyn and moved in my "yute" to California.
So many people on this thread have their assumptions bass ackwards. If the dollar falls, then the cost of American goods relative to foreign goods falls also. This means that American goods become cheaper and more likely to be purchased than foreign goods. So, the sale of American goods rises (i.e. exports rise) and the sale of foreign goods falls (i.e. imports fall). The largest market for the purchase of manufactured goods from all over the world is the American market.
The market success of foreign countries around the world largely depends on their ability to sell to the American market. The American consumer drives the economic engine of the world. If American consumers begin to buy American goods again, this is a problem for FOREIGN businesses, not American businesses. Its the foreign countries that will suffer because of a falling dollar, not America.
It's the Europeso.
(OK, I got the term from Larry Kudlow)
The price of oil increased from $3.00 barrel at the outbreak of the war in Oct. 73 to $12.00 a barrel on Jan 1, 1974. The problem was that once the embargo was over OPEC did not restore their pre-embargo production rates thus keeping the price high and contributing a great deal to inflation.
It was not until the 1980's that the Saudi's figured out that if they were going to have investments in the US that it would be in their best interest to increase production and restore the American economy.
Then why was it the Frogs who did it??
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