...more great economic news.......

[seanx]

just keeping the 3 other guys who even read my postings informed.....but I'm getting bored again with the debates in here:


Economic experts have predicted a continuing slump for the dollar, no matter what the federal reserve does. Others have suggested the dollar's decline is now relentless and will only be accelerated as other countries abandon it for stronger reserve currencies.

The relentless slide in the dollar against other major currencies, notably the euro, is encouraging speculation that Asian countries and oil producers will step up diversification of their reserve assets out of the US currency, accelerating its decline, Capital Economics' Julian Jessop has written today.

While Jessop states that the The dollar's fall has been and will be further driven by a slowing US economy and not by reserve asset diversification, others are not so convinced.

Despite the fact that the Fed has today cut interest rates by a quarter point , analysts at Market Watch believe the dollar is to continue on a downward spiral now, no matter what:

"Whether the Fed cuts its benchmark a quarter percentage point, as expected, or a half-point --or even not at all -- the dollar is likely to bear the near-term brunt of the market's kneejerk reaction either way, and then move in one direction: down." Lisa Twaronite states.

Regardless of whether or not the Fed cuts rates, "the dollar is in for a beating," said Marilyn McDonald, marketing director at Interbank FX.

"The U.S. dollar is finally in trouble. For quite some time now, it has been one of the top five yielding currencies among the [Group of 10 industrialized] nations, which is why it has been used in the carry trade for so long," she said.

Carry trades involve borrowing lower-yielding currencies, such as the yen, and investing it in higher-yielding assets. The dollar has long benefited from such trades, but the benefits are dropping in line with U.S. interest rates.

While the vast majority of analysts agree that the markets are in deep trouble and the dollar is weak due to relatively poor economic fundamentals, U.S. Treasury Secretary Henry Paulson has said that financial markets are recovering from the subprime crisis.

Paulson again echoed previous sentiments of the IMF, Alan Greenspan and Ben Bernanke, stating that while it was "definitely the case" that innovation in U.S. capital markets had gotten ahead of regulatory controls, contributing to the crisis, such innovation remained desirable.

"I don't think we would want it the other way around. If we had it the other way around, we'd be sacrificing growth and efficiency in the markets."

They have all continually badmouthed the dollar, claiming it is "overvalued" despite the fact it has lost over half of its value against the Euro since 2001. The IMF, despite acknowledging "the likelihood of a disorderly plunge in the dollar" and contrary to pleas from Europe has given the green light for traders to continue to sell the dollar.

In their World Economic Outlook brief, the IMF brazenly states that the agenda in continually badmouthing the dollar is to exalt the Chinese Renminbi in order to contribute to "a necessary rebalancing of demand and to an orderly unwinding of global imbalances."

In layman's terms, this means lowering the living standards of the American middle class by tanking the dollar and sending oil prices skyrocketing towards $200 , as part of the "post-industrial revolution" agreed upon by the Bilderberg Group. This would eviscerate the middle class and create a two-caste system based upon the Chinese model, where the super-rich live in opulence and the rest of the population are forced to struggle on the poverty line.

Meanwhile analysts at EconomicsBriefing.com have pointed out that while the UN is warning of ballooning food prices and the possibility of food riots , no one is saying or doing anything about the primary cause, US federal reserve encouraged, worldwide central bank monetary expansion.

[HBGOnline]

Don't be fooled by the dooms day predictions. The dollar like everything else in the financial markets will fall and rise. Yes the sliding dollar is bad for somethings, but it's also great for our firms doing business globally. Most international firms have a 10 - 15% growth overseas, while their US growth is around 3-5%.

Oil is a supply and demand item. Until we grow some balls and start drilling in ANWR (which is predicted to have a reserve greater than any Middle Eastern country) , the Gulf Coast (which China has started to pay others to do in international waters), build more refineries (last one built in the late 70's, protesters keep new ones being built), build out nuke power plants (1 think 1 was built since TMI) oil will continue to rise. America is the worlds largest economy and needs the black juice to continue growth.

Al Gore's wind mills (which Ted Kennedy recently fought against in his own backyard) solar power and other "green alternatives" are not enough to even dent our energy needs of today and future.

We have the resources available in this country to be mostly independent from the towel heads and terrorist. However we are a bunch of pussies and will bitch and moan about everything instead of growing the balls needed to take care of our own.

[sayten]

we have been in a depression for sometime now... We are third world with lots of toys....

[seanx]

admin said:

Don't be fooled by the dooms day predictions. The dollar like everything else in the financial markets will fall and rise.

....did you know that the Fed has bailed out the stock market for the 4th time (I'm going by memory on this.....but I know it's been at least 3) in the past year?.....and now states that it has done it for the last time

....and when was the last time the US dollar fell below the Canadian?.......not during my lifetime

....if the dollar makes a comeback, I will admit to being wrong.....however, seeing how gold is approaching 1000 bucks an ounce and stockmarket bailouts are stopping....China, Israel, Great Britain, Saudi Arabia and Dubai control our economy.....and a bunch of other signs which I don't feel like typing right now.....I'll stick with my financial prediction (ebay may end up being a good side business for you as people start trying to get extra cash and getting rid of things/luxuries...though if others can't afford luxury items...........)

[HBGOnline]

Other countries are investing in our economy not controling it. A weaker dollar makes it a wise investment.

Remember the 80's when the doom and gloomers thought our cities would be owned by foreigners because they gobbled up huge chunks of real estate. Didn't happen.

For every person that can no longer afford a luxury item, there is one that can. While many cry over the sub prime mess, others are using it as an opportunty.

Although all data regarding the ecomomy was strong, Bernake had no choice but to lower the rates. The main reason was to add stability to the stock market. The market is no longer only for the rich. Anybody that has a pension, 401k or other retirement means is usually invested within the market or bonds. The reduction of a quater point was more a symbolism move than a required move to hedge against inflation.

Friday morning the employement data comes out. No matter what the price of oil, a good number will move the market higher, a weak number will drive it lower. Doesn't have anything to do with the Feds desicion.

Fortunately my car's XM has the CNBC radio station and I've been listening none stop while driving. They report the good and the bad and bring in guest with different opinions. Much different then the slanted BS we are forced to hear from the major networks. I would encourage everyone to give it a listen.

[JeffD5Buddy]

the GDP is higher this past 3rd quarter than it's been in 4 years.... for what it's worth.

[HBGOnline]

jeffd5buddy said:

the GDP is higher this past 3rd quarter than it's been in 4 years.... for what it's worth.

GDP does continue strong. Today's job numbers mark 4 straight years of continued growth on the job front. Despite oil and gold reaching record highs, and the continued unknown of the financial instututes playing games with write off numbers, the market closed up for the day.

Sometimes people spend way to much time always looking for a negative. Truth is this economy to date has been the strongest ever. God forbid if the major media would report the facts.

No they would rather do a feature story about some smuck that lost their house because they were idiots signing a loan they knew full well would be hard to make payments. And since it's on the news everyone in America must be losing their homes. Although the problem is estimated to be less than 5% of total mortgage market.

[sayten]

I bought my powerball ticket... if you hear screaming on Saturday night.... that's me.... (without your mom this time)

[seanx]

admin said:

Remember the 80's when the doom and gloomers thought our cities would be owned by foreigners because they gobbled up huge chunks of real estate. Didn't happen.

....time will tell....

For once I hope I'm wrong

[seanx]

...is anyone paying attention to what Bernanke is saying? job growth rate going up and job loss rate going down lower than the growth does not equal more people working, if so why is the economy the number one issue with the American public in the next election?

..more interesting news:

The American empire is falling with the dollar

Online Journal | November 8, 2007
Paul Craig Roberts

The US dollar is still officially the world's reserve currency, but it cannot purchase the services of Brazilian super model Gisele Bundchen. Gisele required the $30 million she earned during the first half of this year to be paid in euros.


Gisele is not alone in her forecast of the dollar's fate. The First Post (UK) reports that Jim Rogers, a former partner of billionaire George Soros, is selling his home and all possessions in order to convert all his wealth into Chinese yuan.

Meanwhile, American economists continue to preach that offshoring is good for the US economy and that Bush's war spending is keeping the economy going. The practitioners of supply and demand have yet to figure out that the dollar's supply is sinking the dollar's price and along with it American power.

The macho super patriots who support the Bush regime still haven't caught on that US superpower status rests on the dollar being the reserve currency, not on a military unable to occupy Baghdad. If the dollar were not the world currency, the US would have to earn enough foreign currencies to pay for its 737 oversees bases, an impossibility considering America's $800 billion trade deficit.

When the dollar ceases to be the reserve currency, foreigners will cease to finance the US trade and budget deficits, and the American Empire along with its wars will disappear overnight. Perhaps Bush will be able to get a World Bank loan, or maybe one from the "Chavez bank," to bring the troops home from Iraq and Afghanistan.

Foreign leaders, observing that offshoring and war are accelerating America's relative economic decline, no longer treat the US with the deference to which Washington is accustomed. Ecuador's president, Rafael Correa, recently refused Washington's demand to renew the lease on the Manta air base in Ecuador. He told Washington that the US could have a base in Ecuador if Ecuador could have a military base in the US.

When Venezuelan president Hugo Chavez addressed the UN, he crossed himself as he stood at the podium. Referring to President Bush, Chavez said, "Yesterday the devil came here, and it smells of sulfur still today." Bush, said Chavez, was standing "right here, talking as if he owned the world."

In his state of the nation message last year, Russian president Vladimir Putin said that Bush's blathering about democracy was nothing but a cloak for the pursuit of American self-interests at the expense of other peoples. "We are aware what is going on in the world. Comrade wolf knows whom to eat, and he eats without listening, and he's clearly not going to listen to anyone." In May 2007, Putin criticized the neocon regime in Washington for "disrespect for human life" and "claims to global exclusiveness, just as it was in the time of the Third Reich."

Even America's British allies regard President Bush as a threat to world peace and the second most dangerous man alive. Bush is edged out in polls by Osama bin Laden, but is regarded as more dangerous than Iran's demonized president and North Korea's Kim Jong-il.

President Bush has achieved his dismal world standing despite spending $1.6 billion of hard-pressed Americans' tax money on public relations between 2003 and 2006.

Clearly, America's leader and America's currency are poorly regarded. Is there a solution?

Perhaps the answer lies in those 737 overseas bases. If those bases were brought home and shared among the 50 states, each state would gain 15 new military bases.

Imagine what this would mean: The end of the housing slump. A reduction in the trade deficit. And the end of the war on terror.

Who would dare attack a country with 15 new military bases in every state in addition to the existing ones? Wherever a terrorist turned, he would find himself surrounded by soldiers.

All of the dollars currently spent abroad to support 737 overseas bases would be spent at home. Income for foreigners would become income for Americans, and the trade deficit would shrink.

The impact of the 737 military base payrolls on the US economy would end the housing crisis and bring back the 140,000 highly paid financial services jobs, the loss of which this year has cost the US $42 billion in consumer income. Foreclosures and bankruptcies would plummet.

If this isn't enough to turn the dollar around, President Bush's pledge not to appoint an attorney general if Michael Mukasey is not confirmed offers more promise. If the Democrats will defeat Mukasey's nomination, there are other superfluous cabinet departments that can be closed down in addition to the US Department of Torture and Indefinite Detention.

The American empire is being unwound on the battlefields of Iraq and Afghanistan. The year is two months from being over, but already in 2007, despite the touted "surge," deaths of US soldiers are the highest of any year of the war.

The Taliban are the ones who are surging. They have taken control of a third district in Western Afghanistan. Turkey and the Kurds are on the verge of turning northern Iraq into a new war zone, another demonstration of American impotence.

Bush's wars have endangered America's puppet regimes. Bush's Pakistani puppet, Musharraf, is fighting for his life. By resorting to "emergency rule" and oppressive measures, Musharraf has intensified his opposition. When Musharraf falls, thanks to Bush, the Islamists will have nukes.

American generals used to say that the wars Bush started in the Middle East would take 10 years to win. On Oct. 31, General John Abizaid, former commander of US forces in the Middle East, put paid to that optimistic forecast. Speaking at Carnegie Mellon University, Gen. Abizaid said it would be 50 years before US troops can leave the Middle East.

There is no possibility of the US remaining in the Middle East for a half century. The dollar and US power are already on their last legs, unbeknownst to Democratic leaders Pelosi and Reid who are preparing yet another blank check for Bush's latest request for $200 billion in supplementary war funding.

There isn't any money with which to fund Bush's lost war. It will have to be borrowed from China.

The Romans brought on their own demise, but it took them centuries. Bush has finished America in a mere seven years.

Even as Gisele throws off the dollar's hegemony, Brazil, Venezuela, Ecuador, Bolivia, Argentina, Uruguay, Paraguay, and Columbia are declaring independence from the IMF and World Bank, instruments of US financial hegemony, by creating their own development bank, thus bringing to an end US suzerainty over South America.

An empire that has lost its backyard is finished.

[HBGOnline]

Bernanke is in a tough spot. Easiest way to increase the dollar value is to raise interest rates. Do that and the housing market and tightened credit markets would collapse even more. Anyone with an interest rate controlled credit card, would pay more. New car sales would also go lower.

Better way to increase the dollar value is to cut spending/reduce debt. Did you see these latest bills laced with "pork" that congress wants to pass?

[seanx]

yeah, I saw all the "pork" in the bills. In my opinion, they add all that crap to make sure the bill does NOT pass. This is why each bill should stand on it's own and have nothing attached to it.

Did you happen to see the Farm Bill too? something like 280 billion dollars and 70% of the money would go to 6% of the farms, all big corporation owned and the crops grown on them are all crops used for fast food restaraunts. So that will keep the crops cheaper for the fast food corporations too. And keep the masses fat and unhealthy. Wanna make a bet that these are the farms that hire the most illegal immigrants and pay the least wages?

People better wake the f*ck up. By the way did you see Ron Paul raised 4.2 million dollars in one day on the internet on Tuesday. We threw 50 bucks towards his campaign to see if the little guy can make some noise and piss off the corporate owned candidates on both sides of the aisle. I doubt he can get the Republican bid but I hope he forces some of them to take up the important issues instead of dodging them.

By the way, your boy Georgie the Dick-tater is all for amnesty. He and Hillary are the same. You'd lick em both.........

[HBGOnline]

seanx said:

By the way, your boy Georgie the Dick-tater is all for amnesty. He and Hillary are the same. You'd lick em both.........

I'd pass on George but I'd love to give Hilary the "shocker".

[Mickulz]

What is the over and under on how many hours after G.W. is out of office that Scooter gets a full pardon?

BTW...Dare I say it, I pretty much agreed with Sean on his last reply about 99.9%.

[BT]

I can't believe that someone on here would repeat the same MSM lie that the free-falling dollar is actually a good thing for America..no, wait..I can believe it.

[seanx]

mickulz said:

What is the over and under on how many hours after G.W. is out of office that Scooter gets a full pardon?

BTW...Dare I say it, I pretty much agreed with Sean on his last reply about 99.9%.

Scooter will get a pardon

and you must've been hit by lightning if you agree with me......

and I disgree with your ideology of the dollar plummeting....it is NOT good for the average Joe American citizen.......by the way, what exactly is it that we (the US) export anymore? besides an imperialistic, mercenary force looking to wipe out religions and civilians and gain control of natural resources to expand a NWO empire.........

[seanx]

here's some positive news on the economic front:

who do you believe? I hope this one is an accurate prediction (by the way did anyone see that the Fed is going to be cutting interest rates again soon? I wonder if they will ever slip into negative digits)

Ailing dollar poised for rebound in 2008

Bloomberg News | December 9, 2007
Min Zeng

At a time when everyone from billionaire investors such as Warren Buffett and Bill Gross to celebrities want nothing to do with the dollar, a growing number of strategists say the stage is being set for a rally in 2008.

The U.S. budget and trade deficits are narrowing in tandem for the first time since 1995, when the currency gained 8 percent as measured by the Federal Reserve's Trade Weighted Dollar Index.

''I am confident that the dollar will have a significant rally next year, especially against the euro and the pound,'' said Stephen Jen, the London-based head of currency research at Morgan Stanley, who expects the currency to strengthen to $1.35 by December 2008. ''The deficits are shrinking fast.''

The 13-nation euro currency bought $1.4655 in trading Friday, up from from the $1.4633 it bought in New York late Thursday but well off its record high of $1.4966 set Nov. 23.

Although Berkshire Hathaway Inc. Chairman Buffett and Pacific Investment Management Co.'s Gross say investing in U.S. financial assets is a losing proposition, improvements in deficits may provide a respite for the dollar after it tumbled 12 percent this year.

The currency may appreciate 7 percent against the euro from its record low in November, according to the median forecast of 38 strategists by Bloomberg. Deutsche Bank AG expects the dollar to rise 4.3 percent.

Royal Bank of Scotland Group reversed its outlook last week and predicts the dollar will appreciate.

A depreciating dollar has helped American exports rise to records in each of the past seven months, the longest streak since 2000. The trade deficit narrowed to $56.5 billion in September from the record $67.6 billion in August 2006, data compiled by the Commerce Department show.

Both President Bush and Treasury Secretary Henry Paulson have hailed exports as a bright spot in an economy that's mired in the worst housing slump in 16 years. A narrowing deficit means fewer dollars are being converted to foreign currencies through trade. Treasury sets dollar policy.

The budget deficit for fiscal 2007 ending Sept. 30 shrank to $162.8 billion. It is the smallest shortfall since $158 billion in 2002, and down from $413 billion in 2004.

[HBGOnline]

seanx said:

here's some positive news on the economic front:

who do you believe? I hope this one is an accurate prediction (by the way did anyone see that the Fed is going to be cutting interest rates again soon? I wonder if they will ever slip into negative digits)

You really need to watch CNBC. The Fed is going to rate cuts on Tuesday .25 to .50 points. And they will continue to cut until the credit crunch has been resolved. Probably stop around 3 - 3.5%They are faced with a double edge sword. To much involved to post here.

Just watch it and you will find more "great news" on the economic front, despite what is printed and reported in the mainstream media.

[seanx]

more bullshit:

$45 trillion gap seen in US benefits By MARTIN CRUTSINGER, AP Economics Writer
Mon Dec 17, 6:49 PM ET

news.yahoo.com/s/ap/20071217/ap_on_go_ot/budget_deficit

WASHINGTON - The government is promising $45 trillion more than it can deliver on Social Security, Medicare and other benefit programs.

That is the gap between the promises the government has made in benefits and the projected revenue stream for these programs over the next 75 years, the Bush administration estimated Monday.

The $45.1 trillion shortfall has increased by nearly $1 trillion in just one year, according to the administration's "Financial Report of the United States Government" for 2006. And, it's up 67.8 percent in just the past four years. In 2003, the shortfall between promised benefits and revenue sources over a 75-year period was put at $26.9 trillion.

The shortfall includes Social Security and Medicare in addition to Railroad Retirement and the Black Lung program.

When the gap in funding social insurance programs is added to other government commitments, the total shortfall as of Sept. 30 represented $53 trillion, up more than $2 trillion in just a year, the report said.

"Our government has made a whole lot of promises in the long-term that it cannot possibly keep," Comptroller General David M. Walker, the head of the Government Accountability Office, said Monday.

Members of Congress said the increase in the unfunded liability for Social Security and Medicare underscored the critical urgency to do something in light of the looming retirement in coming years of 78 million baby boomers.

"The longer we delay action on the issue of entitlement reform, the more difficult the solution will become," said Sen. Judd Gregg, the top Republican on the Senate Budget Committee.

Rep. Jim Cooper, D-Tenn., said the new report emphasized the need to enact legislation he is supporting that would create a bipartisan commission to make recommendations on overhauling benefit programs and then submit those recommendations to an up-or-down vote in Congress.

"If we don't take action now, it threatens to destroy our social safety net and ruin our economic prosperity," Cooper said in a statement.

The new report said that the federal budget deficit would have been 69 percent higher than the $162.8 billion reported two months ago if the government had used the same accounting methods as private companies. Under the accrual method of accounting, the deficit would have totaled $275.5 billion for the fiscal year ending Sept. 30.

Under the accrual method of accounting, expenses are recorded when they are incurred rather than when they are paid. That raises the costs for liabilities such as pensions and health insurance. The new report was released by the Treasury Department and the president's Office of Management and Budget.

The $275.5 billion deficit under the accrual method of accounting was still down by 38.7 percent from the deficit under this accounting method the previous year, when it totaled $449.5 billion.

The deficit on a cash-flow basis of $162.8 billion represented the lowest imbalance in five years. The administration noted the decline in the deficit under both measurements.

"The 2.6 trillion in record-breaking revenues that flowed into the Treasury this year reflect a healthy economy," Treasury Secretary Henry Paulson said in a statement accompanying the new report.

But officials warned that something must be done to address the significant shortfall in the government's largest benefit programs for Social Security and Medicare.

"Reducing the deficit in the short-term will put us in a better position for dealing with the longer-term entitlement issue, which can only be characterized as an oncoming fiscal train wreck," said OMB Director Jim Nussle.

Congress ordered the government a decade ago to start issuing annual reports using the accrual method of accounting in an effort to show the finances in a way that was comparable with the private sector.

As it has for every report, the GAO, Congress' auditing arm, said it could not sign off on the books because of problems at various agencies, most notably the Defense Department. ___