It looks like Nicolas Sarkozy may really be in for a battle in France. He is attempting to bring back some market sanity into a very socialized country. Of course, reform is not going to be easy and some people are going to find it extremely difficult because they are going to be expected to change.
The country currently has regulations that completely protect employees from losing their jobs. They have craddle to grave protections on pretty much everything. They also have serious economic problems. I think that most economists would say that deregulation would drastically help their economic problems. With all of the regulations, the companies can't be competitive which is causing a lot of their issues.
I believe that many of the battles Sarkozy is facing are some of the same battles that the Iron Lady - Margaret Thatcher faced in the UK in the 1980's. Many of her reforms were aren't all that popular at the time but history shows that it has been good for the country in the longer term.
Will history reflect as kindly on Sarkozy or will he just get derailed and get thrown out? It will be interesting to see Socialism fight Capitalism.
Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts
Tuesday, November 20, 2007
Wednesday, November 14, 2007
Value of a Dollar
I am very interested by macro-economics. Not quite to the point of reading many of the books that true economists read such as Friedmann and the like (maybe with some time I might). Anyway the current currency market really interests me. I just found an interesting article on ABC News. Here it is.
Why Is the Dollar Losing Value?
One thing I do find fascinating is that many people are simple minded in their analysis of the issues with the dollar. Why is the dollar so low? Because Bush is moron. Great analysis, thank you, we are all dumber for having read that.
Very interesting dynamics at work with the dollar. Good article.
Why Is the Dollar Losing Value?
One thing I do find fascinating is that many people are simple minded in their analysis of the issues with the dollar. Why is the dollar so low? Because Bush is moron. Great analysis, thank you, we are all dumber for having read that.
Very interesting dynamics at work with the dollar. Good article.
Reverse Logic for Profit
It appears that the oil markets have no sense of common logic. I was just reading an article about the OPEC decision to not raise production quotas and the following statement was made:
"Badri said there was no reason for oil to reach $100, as it almost did last week, and continued to blame refinery bottlenecks, geopolitical issues and the weak U.S. dollar for oil's ascent from below $70 a barrel in mid-August."
-- http://news.yahoo.com/s/nm/20071114/bs_nm/opec_badri_dc_1
This statement makes absolutely no sense to me. A bottleneck at the refining step is causing the price of crude oil, the product that supplies refineries, to go up. That is like saying that because the temperatures outside have been higher is the reason that natural gas prices have gone up.
From an economic perspective, it is reversed logic. It seems to me that bottlenecks in the refineries would cause there to be a larger crude oil supply because they are not processing it as quickly. This would cause supply surplus. Laws of economics say surpluses cause prices to fall not rise.
Is it possible that the all the players in the oil game have learned from politicians that if you just find something to blame people will buy it?
"Badri said there was no reason for oil to reach $100, as it almost did last week, and continued to blame refinery bottlenecks, geopolitical issues and the weak U.S. dollar for oil's ascent from below $70 a barrel in mid-August."
-- http://news.yahoo.com/s/nm/20071114/bs_nm/opec_badri_dc_1
This statement makes absolutely no sense to me. A bottleneck at the refining step is causing the price of crude oil, the product that supplies refineries, to go up. That is like saying that because the temperatures outside have been higher is the reason that natural gas prices have gone up.
From an economic perspective, it is reversed logic. It seems to me that bottlenecks in the refineries would cause there to be a larger crude oil supply because they are not processing it as quickly. This would cause supply surplus. Laws of economics say surpluses cause prices to fall not rise.
Is it possible that the all the players in the oil game have learned from politicians that if you just find something to blame people will buy it?
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