The Third Oil Shock: Two Possible Outcomes
by, 27th-June-2008 at 04:29 PM (1051 Views)
Check it out here. Two oil shocks, two recession. This time, it will be quite a miracle if a recession can be avoided. In fact, at this stage, whether there is an official acknowledgment of a recession or not, frankly is not that important. What matters is how soon the USA is able to dig itself out of the hole. Other than a recession, of course there's other worry the world has to contend with, for example, how is the USA going to cut down its debt? How are they going to pay back their debt to the creditors?
How about a devaluation of the US$?