The United States is currently seeing huge inflows of capital from the developing world, notably China, that are financing its current account deficit, bolstering the dollar and keeping long-term interest rates low though bond purchases.
There are potential triggers that could create serious consequences for the global economy. The first is a southward movement of the dollar, the second is an unexpected increase in U.S. interest rates ... Thirdly, (a spiral in) energy prices... will lead to inflationary expectations,"
Poor funding of rich is seen as unsustainable, risky. It is happening within our country, as well.
28 January, 2006
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