Americans are borrowing less? Not at all. They are still borrowing more than last month, or even last year. But the rate of growth of that borrowing is decreasing! Whee! Don't you feel better now?
Meanwhile, there is a great fear of an economic slowdown in the U.S. And Iran is thinking of buying and selling oil in a currency other than the dollar.
View http://news.yahoo.com/s/ap/20060505/ap_on_bi_go_ec_fi/consumer_credit;_ylt=AuogCCMGtgmsa2e3hjnVFA3v5rEF;_ylu=X3oDMTBjMHVqMTQ4BHNlYwN5bnN1YmNhdA for the article.
4 comments:
So what will happen if Iran starts buying and selling oil in a currency other than the dollar? And would this currency be the Euro?
Iggy,
It probably would be the Euro. And what it would mean is that the demand for the dollar would decline dramatically. Then the value of the dollar would decline as well. It is the high value of the dollar that is allowing the U.S. to get as much as we do for our money.
If the value of the dollar fell dramatically, then the price of everything here in the U.S. would rise dramatically. Stagflation. Because then the Fed Chairman would raise the interest rates to get inflation under control.
What if Iran moves its oil AND heroin to the Euro? Rafsanjani's accountant will be busy!
US dollar only worth 70 cent to dollar now. Lot's of money being recovered offshore now.
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