World News and Trends: Instability returns to currency markets, world economy
Halfway through the 31/2-year transition planned for the adoption of the euro by 11 of the 15 member nations, the European single currency appears to be in trouble.
Since its launch at the beginning of last year, the euro has lost almost a third of its value against the U.S. dollar. This means Europeans are spending considerably more on imported items, including fuel for their vehicles. It also means Americans are finding it harder to sell their products to the European market, the biggest single marketplace in the world.
International economists and bankers agree that the European countries' economies overall are fairly strong so there is no logical reason for the euro to fall. That the currency is new and unknown may be one reason for the lack of confidence in it, but the main reason, according to those who supposedly know, is that European investors continue to buy into the lucrative American market, where returns on their investment are higher than back home.
The continuing U.S. trade deficit would normally cause the dollar to decline in value, making it easier for America to sell its products around the world. The deficit reached an all-time high this summer. By the end of the year it will be about $400 billion. That's the biggest trade deficit any country has ever had. The deficit appears set to continue as Americans continue to buy more from overseas than they sell to other countries.
Under normal circumstances this would be a cause for grave concern, but the rest of the world seems content for now to reinvest that $400 billion into the American economy. Many American companies are being bought out by foreign companies.
Currency fluctuations are caused mainly by perceptions and resulting speculation. When people in various countries perceive that the U.S. economy is doing well they want to buy into it and reap the rewards of their investment. If their perception should change, "things could turn nasty very quickly," as a commentator on National Public Radio put it recently.
If the rest of the world suddenly decided it was no longer willing to finance America's trade deficit, the dollar would plummet in value around the world, and other nations would start looking for an alternative international trading currency. We could then see the euro rising in value against the dollar.
A repeated lesson for Christians in times of uncertainty is not to put their trust in money. Repeatedly, throughout history, people have lost substantial amounts through periods of financial instability and economic upheaval. Just two years ago many fortunes were lost during the last major crisis in the world's financial system when the Russian currency collapsed, followed by similar falls in currency values across Asia.
Jesus Christ taught Christians to put their trust and confidence elsewhere: "Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal" (Matthew 6:19-20).
An Article from:
Good News Magazine: November - December 2000
Course Content
John Ross Schroeder
John died on March 8, 2014, in Oxford, England, four days after suffering cardiac arrest while returning home from a press event in London. John was 77 and still going strong.
Some of John's work for The Good News appeared under his byline, but much didn't. He wrote more than a thousand articles over the years, but also wrote the Questions and Answers section of the magazine, compiled our Letters From Our Readers, and wrote many of the items in the Current Events and Trends section. He also contributed greatly to a number of our study guides and Bible Study Course lessons. His writing has touched the lives of literally millions of people over the years.
John traveled widely over the years as an accredited journalist, especially in Europe. His knowledge of European and Middle East history added a great deal to his articles on history and Bible prophecy.
In his later years he also pastored congregations in Northern Ireland and East Sussex, and that experience added another dimension to his writing. He and his wife Jan were an effective team in our British Isles office near their home.
John was a humble servant who dedicated his life to sharing the gospel—the good news—of Jesus Christ and the Kingdom of God to all the world, and his work was known to readers in nearly every country of the world.
Melvin Rhodes
Melvin Rhodes is a member of the United Church of God congregation in Lansing, Michigan.
Scott Ashley
Scott Ashley was managing editor of Beyond Today magazine, United Church of God booklets and its printed Bible Study Course until his retirement in 2023. He also pastored three congregations in Colorado for 10 years from 2011-2021. He and his wife, Connie, live near Denver, Colorado.
Mr. Ashley attended Ambassador College in Big Sandy, Texas, graduating in 1976 with a theology major and minors in journalism and speech. It was there that he first became interested in publishing, an industry in which he worked for 50 years.
During his career, he has worked for several publishing companies in various capacities. He was employed by the United Church of God from 1995-2023, overseeing the planning, writing, editing, reviewing and production of Beyond Today magazine, several dozen booklets/study guides and a Bible study course covering major biblical teachings. His special interests are the Bible, archaeology, biblical culture, history and the Middle East.
