Monday, May 13, 2013

Standalone Economy

   As economies in other nations decline, U.S. export sales will suffer, and producers will have to find new markets or lower their prices -- domestic and international -- to make up for lost sales.
   Moreover, even if international trade collapses, the American economy will be bruised, but not to the extent some predict. Big as it is, however, America no longer has a standalone economy. Fruit and vegetable markets, for instance, are international, and money moves through financial channels with Internet speed.
   So if (or when) the euro falls, the U.S. dollar will strengthen its role as a safe haven for investors and the super-wealthy. Meanwhile, a drop in gold prices may be a sign that the Big Bucks Crew see an economic turnaround in the offing, so they are willing to put their money into growth projects

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