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View Full Version : Article: The Euro and the War on Iraq

Karim
03-30-2003, 12:12 PM
http://www.rense.com/general36/euro.htm

Hopefully someone with a stronger economics background can challenge some of the assumptions in the article.

1) I can't see a 40% devaluation of the US dollar, even if all OPEC countries switched to the Euro. Any "flushing" of the US Federal Reserve would happen gradually. Plus, would there really be a "crisis mentality" among investors causing an abandonment of the US dollar in favour of the Euro? Why would an investment in ABC Inc. producing widgets be a worse investment with a change in the oil standard, especially if that company is in an unrelated sector of the economy?

2) Wouldn't a temporary or permanent devaluation in the US dollar actually make American goods cheaper and more attractive abroad? As a result, would this not actually bite into the trade deficit?
Karim
03-31-2003, 01:33 PM
bump?
Bee
03-31-2003, 01:35 PM
You should ping Quiksand and see what he thinks. He probably is the "strongest" economics person on the board.
Fritz
03-31-2003, 01:49 PM
Alas, Morgado would be a good one to reply.
Bee
03-31-2003, 01:58 PM
Originally posted by Fritz
Alas, Morgado would be a good one to reply.

True, but since he hasn't posted for 2 years I figure Quik might be the best bet. ;)
JonInMiddleGA
04-02-2003, 09:31 PM
I confess that I'm not quite sure to make of this either, but I find it very interesting that it was posted here. Previously, the only time I had heard this was from one of my most "connected" friends and I had to be rather non-committal about it because it caught me a bit off -guard (and seemed a little farther fetched to me than your average conspiracy theory).