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Just a short remark:
The US is experiencing one of the longest economic expansions in its history. The only thing that americans fear today is inflation. If prices go up, Mr. Greenspan from the Federal Reserve (the american parallel for Bank Israel) will have to raise the interest rates. When interest rates go up, so says the economic theory, stocks will go down. Stocks - this is Wall-street, and a falling wall-street means a recession, with many american families seeing their pension funds and savings shrinking. Those of you who follow oil prices might have noticed that a while ago, the price of an oil barrel rose to about $32. High oil prices mean higher prices for all those things that need oil for their production: electricity, metals (in the refining process), plastics,... This means a higher inflation - many things become more expensive when oil price rises. However, mysteriously enough, the US secretary of the treasury (the american name for the minister of finance) came just then to an urgent meeting with OPEC leaders to convince them to reduce prices. I don't know what was said there, but prices have fallen immediately by some 20-30%. Conclusion: It is no secret that Americans try to lower oil prices - they will do anything to prevent a fall in wall street in an election year. |
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