Quote:
Originally Posted by Rockstar
Besides blaming inflation on Germans  , price gouging, speculators and hoarders. I’m not sure if yours or other governments are print and spend. Even if they are not I can’t help but think our actions may be spilling over and affecting others economies as well. |
I am not even trying to pretend that i understand economic cycles, but the text you posted helped me understand it a bit better.
Of course the dollar and what happens with it will influence other economies. Not with bribing or such direct action, but markets react to all kinds of rumours. Which is why i think economy is a crazy random circus, not a science, and can thus not be foretold
Spiegel wrote a few years ago:
"If Sarkozy interrupts his vacation, the markets interpret his sudden return as a sign that the situation there is worse than they thought -
and promptly set their sights on the country.
And if there is an argument between Italian Prime Minister Silvio Berlusconi and Finance Minister Giulio Tremonti, then the markets target Italy, because they doubt that the Italian government is serious about introducing austerity measures.
The markets take advantage of every weakness and every rumor to speculate against one country after the next.
In doing so, they aggravate the crisis. Once a country has become the subject of rumors and speculation, other investors become nervous. Fearing further price declines, pension funds and insurance companies also start selling stocks and bonds. In the end, fear nurtures fear and a panic ensues."