when I responded to Anthony at 6:36 AM, I forgot to add: I was talking
about the very recent past (the last couple of years), which was the
original topic. ("The population of millionaires grew five times as
fast in emerging markets as it did in the U.S. last year.") Over the
longer haul, I'd put much more weight on the rise of India and China
as industrial powers (though I'd add that the fragility of these rises
has not been tested by a US recession yet).(during 2007, the euro rose about 10% relative to the US$, helping those holding assets denominated in euros or hooked to the euro; the euro price of oil rose about 41%, so that the US$ price of oil rose about 51%.) On Thu, Jun 26, 2008 at 6:36 AM, Jim Devine <[EMAIL PROTECTED]> wrote: > Anthony D'Costa wrote: >> I am having difficulty in figuring this out: how rising oil prices and the >> falling dollar create millionaires in countries that have large net imports >> of oil and their dollar holdings is worth less in domestic currencies. I >> can understand this for Russia with massive new found oil revenues but India >> and China the wealth creation is due to something else, at least that's what >> I think. > > you're generally right: the fall of the US$ doesn't help those rich > folks in countries whose currencies are fixed to the dollar (e.g., > China) directly, while the rise in oil prices doesn't help those in > countries that import oil. But it might do so indirectly, since rich > folks often diversify out of their home country currencies and out of > assets in their home countries. (Often those two diversifications are > the same thing.) > > -- > Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own > way and let people talk.) -- Karl, paraphrasing Dante. > -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
