Mr. Flaherty responce to petrodollar recycling

So I email Primeminister Harper, aking him how Petrodollar-recycling would effect canada, if the Americans are unsuccessfull in the middle east.

I wish i saved the email i wrote, but i honestly never expected a responce.

I didn't get one from Harper himself, it went through his correspondance office, and was then sent to the minister of finance for his comments. I got a letter from his correspondance telling me that my concerns were in their portfolio i thanked me for my questions. I thought that was that, how much dialoque was i expecting from our federal government?

Until last month, and almost a full year since i sent the original email to Harper, I get a responce from Mr. flaherty himself.

January 29, 2007


Mr. Travis Sloat
[email protected]
Dear Mr. Sloat:
Thank you for your correspondence of March 3, 2006 regarding the impact of the
recycling of petrodollars by oil producing countries on the U.S. economy and,
potentially, on the Canadian economy. Please excuse the delay in replying.
Recent U.S. current account deficits are larger and more sustained than in the
past. The U.S. deficits are matched by large surpluses in Japan, Germany,
emerging Asia and oil-exporting countries, with oil exporters and emerging Asia
contributing the most recently to the financing of the U.S. economy.
However, a possible reduction in the accumulation of U.S. assets by oil
exporting countries will not signify the collapse of the U.S. economy. Over the
long run, the combination of higher saving in the US., stronger growth in Japan
and Germany, and greater investment in emerging Asia would help resolve global
imbalances while minimizing the negative growth impacts on the U.S. economy.
For its part, the Canadian economy has held up remarkably well over the past
several years despite currency appreciation and other challenges. Aided by low
interest rates, strong employment growth and healthy growth in real personal
disposable incomes, domestic demand supported Canada's growth over the past
three years. With the possibility of further exchange rate appreciation in
response to global imbalances, domestic demand is likely to continue to lead
economic growth in Canada over the near-term.
Achieving an orderly resolution of deepening global imbalances is a key
challenge for the global economy as a whole. For Canada's part, I am confident
that strong macroeconomic fundamentals - notably the shift from budget deficits
to sustained surpluses and the policy of low and stable inflation - have enabled
us to weather economic shocks better than in the past.
Thank you for communicating your concerns.
Sincerely,
James M. Flaherty

Now im no economist, and this responce was no where near what i was asking in Laymens terms

So i would like to know from the more educated on this board, what is this man talking about, and is he telling me not to worry about petrodollar recycling?

I understand how things work practicly, but as soon as big words get in the picture, my picture gets blurry.

does this mean that no one else can understand what he is saying.

I knew i was getting punked off

Good day Tom,

I do not belive you were getting punked off, the letter is quite standard when you take a look at political corrispondance. They answered your intial question by giving you the vague details of what may or may not influnce the petro recyclling dollars you asked about. When it's not 330 in the morning I"ll review the letter in more detial and provide you with a bit more insight into what he is saying.

Thanks for sharing the letter and thank you for taking the time actually write your governement. It shows that the process of free speach and democracy still works.....*insert your own comment here*

Thank you for your time,

Arcticnull