The market of securities is sustaining major blows on the global scale. Securities are rapidly going down in value only to shoot up thanks to government bailouts. Some people use this roller coaster to strike rich. Yet the majority have become frozen with fear, anticipating a catastrophe. Some have already experienced the full brunt of the adverse impact. So what can we expect in the future?
To begin with, the US presidential elections are the most powerful factor. The Republicans have been in power for too long, fully achieving the goals they set over the years in leadership. What goals, you may wonder? The answer is simple – a cheap dollar and new oil territories. Precisely. A falling dollar was good for the US, at it offered extra stability to US makers against the backdrop of rising oil prices. Meanwhile, oil price hikes was a natural process resulting from the US foreign policy that involved an occupation of Iraq and a face-off with Iran.
The dollar cannot be allowed to depreciate any lower, much like all prices cannot be permitted to rise any further. This is due to both economic reasons within America and the political situation in the international arena. Too quickly have the oil-producing countries started to reassert themselves. Too soon have them managed to rise to their feet after the last oil price drop in the 1990s. Too far has the economic crises been allowed to deteriorate.
What can and will the US undertake in the near future? To begin with, the fact that a Democratic president will replace the Republican incumbent is inevitable. The first thing the Democrats will do is change abruptly the country’s foreign policy. This mainly applies to Iraq. In one way or another, peace and order will come to that country. At least in the oil-producing areas. And cheap oil will start to flow.
Quite probably, this factor will be supplemented with a few more. They could unfreeze oil wells on US territory or simply make an announcement to this effect. They could published the “right” oil reserve figures, etc. Skillful play by the main economic giant (the USA) can easily break the upward oil trend.
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