The U.S. economy is still only muddling through, according to revised GDP numbers out by the Commerce Department. That’s bad news. But more disturbing is the accompanying dollar slump against the euro, and what it says about perceptions of our economy versus Europe’s.
The Commerce Department’s revised report on first quarter GDP …
There’s a lot of talk about what Dominique Strauss-Kahn’s arrest for sexually assaulting a maid means for the eurozone crisis. Less attention has gone to the fate of another project close to DSK’s heart: weaning the global financial system off of the U.S. dollar. DSK had been a vocal proponent of using the IMF’s de-facto currency, the …
The U.S. trade deficit climbed 6% in March, according to numbers out from the Commerce Department. But the widening trade gap, the highest since June 2010, may not be as worrisome as it seems. Much of the jump has to do with the recent uptick in oil prices, which makes the U.S. bill for oil imports more expensive. But if you take oil …
Robert Fisk’s report in the Independent that the Persian Gulf countries are planning to stop pricing oil in dollars by 2018 and start using a basket of currencies instead has caused quite the big stir today. Gold hit a new record of $1,043 an ounce as investors worried about the future of the dollar, and the Internets were aflame with …
In today’s FT, Martin Wolf writes about China’s $2.1 trillion in foreign currency reserves:
It is little wonder such a huge exposure makes the Chinese government nervous. But nobody asked the Chinese to do this. On the contrary, US policymakers have consistently (and wisely) advised them to do the opposite. Having made what I believe was
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