High_Stakes

High Stakes HIGH STAKES How the war may affect global economies, U.S. politics, and diplomacy The war in Iraq has had and will have lasting effects on economies throughout the world. “The U.S. and world economy are extremely fragile,” says Allen Sinai, Chief global economist of Decision Economics Inc. consultants. “A prolonged war would likely trigger a full-fledged global recession.” Many U.S. executives are in unisons saying that a short, decisive war is necessary to spark the economy. The degree of impact, negative or positive, depends greatly on the longevity and outcome of the war. Oil prices have skyrocketed to $38 per barrel from a low last November of $25. The consumers with their war jitters are not spending thus driving consumer spending down to its lowest in nearly a decade. However, triumph on the battlefields could put an end to this gloom. Even before the troops moved into Iraq, oil prices fell 27% to $29.88. Yet with the still underlying threat of new theorists attacks, the price of oil still looms in the valley of the unknowns. If Saddam knocks out key oil fields, the resulting shock would possibly trigger a slump. Other war, economy, oil, spending, major, iraq, global, yet, world, trigger, supply, stock, should, resources, prices, over, out, nation, market, impact, however, fields, even, effect, economies, certainly, airlines, affect, blood, yes, worst, without, wastes, vulnerable, very