Tuesday, May 16, 2006

A Little Economics Lesson

In case you didn't know that America is the economic engine of the world, then here's a big indicator. America runs a huge, some claim unsustainable or crippling, trade deficit. This pushes the value of the dollar down on the open market, but it looks like quite a few other countries depend on the dollar being high to prop up their own economies.

Don't forget to note the bit about China finally allowing their currency to float a little in value when compared to the dollar. If this signals a true change in their policy, it is a very good thing for the world. China's is a large and growing player in the global economy, and communistic practices can do severe harm to the normal functioning of an economy.

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