Saturday, March 25, 2006

US Dollar's Destabilising Factors

The housing data released on Friday provides more evidence of a continuing slowdown in the housing market. The 10.5% drop in new-home sales was indeed the biggest since an identical slide in April 1997 and the overall level of demand was the lowest since May 2003. Some currency strategists wondered whether the dollar's negative reaction was one of the harbingers of a turning point lower for the currency, which rallied some 15 percent against the euro and yen in 2005.

In today's article, David J. Jonsson (the author of Clash of Ideologies - The Making of the Christian and Islamic Worlds) provides some further insights into other various ongoing fundamental issues that could structurally threaten the stability of the US dollar. He briefly touches on the following:
  • Uniting of Islamic Interests for Economic Gain
  • HRH Prince Alwaleed bin Talal on Economic Impact
  • Structural Changes
  • Factors Destabilizing the Dollar
  • The Future of Oil Trading in Euro - Creation of the Iranian Oil Bourse
  • Economic Indicators to Consider
  • Anxieties on the Dollar - The Growing Burden of U.S. Financing
  • The Role of Net Capital Inflows
  • Increasing Exports and Reducing Imports The Real Estate Bubble?
  • The China Impact
  • Potential Conflict With Iran
  • The China Issue
  • Ideology Trumps Economics and Military Strength

Read the full article Structural Changes - Destruction Of The U.S. Dollar.

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