How U.S. Down-turn Affects Global Economy
CBN News
August 25, 2008
CBNNews.com - In the last two weeks, gas prices have fallen 15 cents after oil dropped from nearly $150 a barrel to just over $110.
And the dollar has surprised investors by suddenly getting stronger. But how long will these trends last?
The Global Economy
The credit crunch in the U.S. has taken its toll on the American economy - bringing it to the brink of recession.
Now it looks like the rest of the world is following suit.
"Generally what has happened is we are getting signs that growth around the world is slowing, the recent numbers we've got from Europe are almost awful," said Jay Bryson, a global economist with Wachovia.
And that's taking its toll on currencies like the euro. As the euro has fallen, the dollar has gotten stronger.
Even red-hot China may not be growing as fast as in recent years.
Many economists say the global economic slowdown has been a key factor in the fall in the price of oil.
Bryson said, "As growth slows down around the world the demand for oil starts to slow down as well."
But not everyone agrees. The investment firm of Goldman Sachs says oil is heading back up to a record $149 a barrel.
Today Dennis Gartman - one of the world's top experts in investing in oil, gold and silver and publisher or 'The Gartman Letter' - spoke with 700 Club. Click play to watch the interview following this CBN News report.
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