mohit | Shared With: Everyone - Nov 13 2007 | investment club, money, investing
Quoted: If the real return on the US dollar is high versus other currencies then worldwide money savers will always prefer the US dollar, despite much higher nominal interest rates for some currencies (Venezuela, Russia, Brazil,… yield more than 10 % , yet the real rates - adjusted for inflation - have been much smaller than for the US dollar over the latest years).
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the weak US and European economies lead to an extremely strong capital flow into Asian, Russian, Latin American and even African economies thus strengthening the demand for worldwide commodities.
- mohit | Shared With: Everyone - Nov 13 2007 | bush, money, dollar, gasoline, politics, investment club
Quoted: When they go to war, most governments try to be fiscally conservative. They institute austerity programs that require less spending at home and they raise taxes. President Bush spent more at home (following the Reagan economic model) and cut taxes. Then he borrowed money to fight the Iraq war - borrowed it by selling Treasury bills to other countries.
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In the last few years I've heard people say that, well, you can't really blame the President for the price of gasoline. After all, it's those nasty Arabs that are raising the price. Recently I've clarified the issue for myself: you really can blame the president for the price of gasoline. His policies and actions have lead to the decline of the dollar. And the decline of the dollar is why gasoline at the pump costs what it does.ShareViewed: 1 Time
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