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The US current account deficit, the broadest measure of trade and investment flows, has hit a record $US166.2 billion in the second quarter, the Commerce Department said.
The deficit increased to a record 5.7 per cent of gross domestic product during the quarter.
Originally posted by Kano
Had a brief look on CNN.com and can't seem to find any reference to this, a little odd that theres no particular note of it? Fairly big news I would have thought? Considering election and all.
Originally posted by moxyone
actually the higher the deficit, the higher interest rates will go, which is good for retired folk living on a fixed income.
Think about it.
we will always have a deficit.
so what.
Originally posted by moxyone
Think about it.
we will always have a deficit.
so what.
Originally posted by taibunsuu
Originally posted by moxyone
actually the higher the deficit, the higher interest rates will go, which is good for retired folk living on a fixed income.
Think about it.
we will always have a deficit.
so what.
Higher the deficit, less the value of the US dollar. Countries and banking corporations stop buying US bonds and start switching to Euros. Value of dollar drops. Think about it. Huge deficit and massive trade disparity kills confidence in US dollar.
Why do you think Clinton's plan was to kill the national debt, because he was a stupid tax-and-spend liberal or he realized that it's essential to the US?
Originally posted by moxyone
when push comes to shove, the world buys dollars.'
not euros.
Originally posted by moxyone
bs.
the dollar will only weaken nominally.
and guess what?...
when push comes to shove, the world buys dollars.'
not euros.
middleeastinfo.org...
In just a few years the Euro has emerged as a real alternative to challenge the dollar hegemony in world trade. It has established itself as the second most important currency on the world�s financial markets. Just before the introduction of the euro, the outstanding amount of bonds and notes denominated in the legacy currencies of the euro accounted for barely 28 % of world issues, compared to 45 % for dollar-denominated bonds and notes. By mid-2003, the gap became much smaller: the share of issues in dollars had fallen to 43 %, while the euro�s share had increased to 41 %. And even more spectacular development took place on the money market. At the end of 1998, money market instruments denominated in the euro�s predecessor currencies accounted for just over 17 % of world issues, compared to 58 % for dollar denominated instruments. By mid-2003, the share of issues in dollars had fallen to 30 %, while the share of euro issues had climbed to almost 46 %. The Euro today accounts for one quarter of the global market.