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Old Wednesday, November 21st, 2007
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Default Re: OPEC leaves dollar, output questions dangling

Quote:
Originally Posted by bombadillo View Post
No. The EC produces a trade surplus (modest, I think, but a surplus nonetheless). Ultimately what has been driving the dollar down has been the United States' sustained trade deficits. In a nutshell, the USD has been living beyond its means for decades, and financing its consumption by giving foreigners pieces of paper (dollar currency or US Treasury debt). Europe maintains its house better than the US.
Thats exactly the case of the UK.


Furthermore, the Eurozone itself has passed form wide surplusses to balanced situation, so I believe next step is Euros collapse after USD.
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