It's caused by inflation, folks. The government (the Federal Reserve actually) has been inflating the currency since 2001. That means the currency is worth less, stuff costs more, with commodities going up first, especially imported commodities. That means oil.
And the inflation, brought to you by the low interest rates that pumped up real estate, is heating up the economy and increasing our own demand for oil.
China's currency is tied to the US dollar, so, surprise, surprise, so is Chinese demand for oil.
Its bad public policy again.
Friday, April 21, 2006
Monday, April 10, 2006
From Marginal Revolution: French economics
Marginal Revolution has a piece on French economics citing a survey of 22 countries. Every country in the survey had a majority of the respondents agree that the free-market economy was the best system, EXCEPT FRANCE.
Which comes as no surprise if watch the news on a regular basis. Which group is striking and/or protesting in France this week so they don't have to deal with the slings and arrows of the marketplace? One week its the farmers, the next its young people, etc.
If people don't compete, neither can their country. And competition within the EU will make that clear going forward. French entrepreneurs already go abroad to start new businesses rather than deal with all of the anti-reality regulations. Like overtime being outlawed, for example, even for executives.
Which comes as no surprise if watch the news on a regular basis. Which group is striking and/or protesting in France this week so they don't have to deal with the slings and arrows of the marketplace? One week its the farmers, the next its young people, etc.
If people don't compete, neither can their country. And competition within the EU will make that clear going forward. French entrepreneurs already go abroad to start new businesses rather than deal with all of the anti-reality regulations. Like overtime being outlawed, for example, even for executives.