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Be Alert!

Moriel Ministries Be Alert! has added this Blog as a resource for further information, links and research to help keep you above the global deception blinding the world and most of the church in these last days. Jesus our Messiah is indeed coming soon and this should only be cause for joy unless you have not surrendered to Him. Today is the day for salvation! For He is our God, and we are the people of His pasture and the sheep of His hand. Today, if you would hear His voice, - Psalms 95:7

Wednesday, December 27, 2006

Dollar's sharp fall revives fears of global economic imbalances

Alert Focus: Mammon / The Third Seal Proverbs 16:16 How much better it is to get wisdom than gold! And to get understanding is to be chosen above silver. Editorial Note: This article originally appeared in the December 9, 2006 edition of Moriel's Be Alert! email newsletter. AGENCE FRANCE PRESSE - By Amelie Herenstein - December 4, 2006 -- PARIS - A sharp fall in the dollar over the past two weeks has revived fears among analysts that major imbalances in the gloabl economy could trigger a far-reaching financial crisis if they intensify. The dollar is on a slide against most of the developed world's principal currencies -- notably the euro, the pound sterling and the Swiss franc -- as well as gold. In Asian trading on Monday the euro surged to its strongest reading against the greenback -- 1.3367 dollars -- since March 2005. The single European currency has shot up 11 percent against the dollar since the start of the year. Antoine Brunet, an economist at the HSBC bank here, said the dollar's plunge suggested that "we have once again entered a dangerous turbulent zone on exchange markets". The weakening trend was in part triggered by comments last month from People's Bank of China governor Zhou Xiaochuan that were seen as heralding a possible shift in some of the bank's massive foreign currency reserve holdings away from the dollar. Adding to the pressure were indications of an economic slowdown in the United States, holding out prospects for a cut in US interest rates by the Federal Reserve at a time when rates are seen rising in the eurozone and Japan. Those factors have sparked heavy capital movement that is unfavorable to the dollar, according to analyst Olivier Bizimana at the French bank Credit Agricole. At the same time, he warned, there is a conviction that "current imbalances cannot continue", a reference to a situation in which countries such as Japan and China that have huge current account surpluses finance big current deficits carried by the United States. The current account is a broad measure covering a country's trade in goods and services as well as certain financial transfers. What economists fear in particular is that a deep-seated crisis of confidence in the dollar, as well as the US economy, could lead to a disruptive and dramatic sale of US assets by foreigners. That could prompt the US Federal Reserve to raise interest rates, thereby threatening economic recoveries in the United States and elsewhere.... http://news.yahoo.com/s/afp/20061204/ts_alt_afp/worldeconomyforex_061204140040 FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.