Thursday, July 03, 2008

It's not just US

the economies of the entire world's nations are crumbling.

At the bottom of the article, the suggestion is made that our fellow "rich" nations will express concern about the weak US dollar, namely, that it's causing the rise in oil prices, priced of course in "petrodollars." Of course, that's true, and in part explains the increasing price of oil. But what can the US do? If it decides to "strengthen" the dollar by, for example, increasing interest rates on borrowing, its economy, already in the tank will drop even deeper. If it does nothing, inflation--derived from high oil prices, mostly--will continue to spiral out of control.

Thanks, George.

1 comment:

Anonymous said...

Check mate, or a Mexican standoff with chaos.