A War With No Smoke Between the USD and the Euro.
Although Bush knew clearly that he would take great political risks for launching the war, he ultimately did it without hesitation. What does Bush exactly want? The motive of the war is becoming a hot topic of discussion. Is the war only for humanitarianism? No. We can't deny that there are some further political and economic motives behind the camouflage of eliminating the weapons of mass destruction in Iraq. From a special perspective we can say that the Second Gulf War is one with no smoke between the USD and the Euro.
The hard USD is losing its supports and it can't be reversed that the Euro is going hard.
America created an economic miracle during the last century: It kept inflation and unemployment low as its economy was increasing at a high speed. American residents took excessive consumption without anxieties when they enjoyed the low-cost goods flooding in from other countries. During the last ten years of last century, Greenspan earned countless admirations: Although American interest rate was low, the international capital still flowed into America successively and, on the other hand, American economy boomed with low dilation and low saving rate. The magic prosperity of America economy can be attributed to the USD, the universal money. Due to the leading status of the USD, America can act as the final borrower through issuing bonds to offset its deficit. There is no shortage of buyers in the bond market, many of whom are foreign investors. By the way of purchasing American bonds, other countries return America the USD capitals they earned through international trades, making the USD harder under the support of reflowing capitals. Such a sound cycle of capitals promotes the successive development of American economy.
In Apr. 2000, the economic bubble began to shatter. A typical example is that the IT industry has been at low ebb.
