Dollar vs Euro
Despite the news about Bear Stearns, this may be the news that is the most significant in the long run. The EEC economy is now larger than the US economy.
According to the story “Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro.”
It’s not that Europe is growing faster than the US, it’s that our government is inflating the dollar faster than the Europeans are inflating the Euro. And with all the billions the Fed has created out of thin air in the past few months, I don’t see that trend reversing anytime soon.
gk
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