American Economy Going Strong ! Thank God !

by DebSmithLopez 53 Replies latest jw friends

  • jayhawk1
    jayhawk1

    Oil producers shun dollar

    http://www.netscape.com/viewstory/2006/12/10/oil-producing-nations-shun-us-dollar/?url=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F277471c2-8889-11db-b485-0000779e2340.html&frame=true

    By Haig Simonian in Zurich and Javier Blas and Carola Hoyos in London

    Published: December 10 2006 20:11 | Last updated: December 10 2006 20:11

    Oil producing countries have reduced their exposure to the dollar to the lowest level in two years and shifted oil income into euros, yen and sterling, according to new data from the Bank for International Settlements.

    The revelation in the latest BIS quarterly review, published on Monday, confirms market speculation about a move out of dollars and could put new pressure on the ailing US currency.

    Market liquidity is traditionally low in December, and many traders have locked in profits, potentially reinforcing volatility.

    Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

    Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the BIS said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling.

    The BIS, the central bank for the developed world’s central banks, is customarily cautious in its language. However, it noted: “While the data are not comprehensive, they do appear to indicate a modest shift over the quarter in the US dollar share of reporting banks’ liabilities to oil exporting countries.”

    The review shows that Qatar and Iran, whose foreign exchange policy has sparked widespread market speculation, cut their dollar holdings by $2.4bn and $4bn respectively.

    Such shifts may be modest compared with the total assets held, but they provide a crucial indication on future thinking.

    Currency switches are likely to be progressive, subtle and discreet, as untoward attention could hit the dollar, lowering the value of depositors’ remaining dollar-denominated assets.

    The last time oil-exporting countries cut their exposure to the dollar – in late 2003 – it pushed the euro to an all-time high against the dollar. Eighteen months ago, the exposure to the dollar of oil producing countries was above 70 per cent.

    BIS data is the best guide financial markets have to the currency investment trends of oil producers, which otherwise do not?provide figures.?The?rise?in oil prices since 2002 means oil producing countries have amassed a current account surplus of about $500bn, according to the IMF. This is 2½ times the current account surplus of China.

    Overall, Opec’s dollar deposits fell by $5.3bn, while euro and yen-denominated deposits rose $2.8bn and $3.8bn, respectively. Placements of dollars by Russians rose by $5bn, but most of their $16bn additional deposits were denominated in euros.

    The dollar has suffered weakness because of concerns about global imbalances and the future course of the Federal Reserve’s interest rate policy.

  • zeroday
    zeroday
    With the economy predicted to slow this year, and perhaps slip into a recession,

    According to who. Do they name sources ofcourse not. Just through it out there and anyone will believe us...... SOURCES IF YOU EXPECT TO BE BELIEVEABLE AND YET THERE ARE NONE.......................

  • Arthur
    Arthur
    Stock market is up triple digits in spite of the new, Democratically-controlled, Congress.

    Yes, we all know that the main objectives of the new Congress is to wreak havoc on the stock market, and plunge the economy into recession. I think Nancy Pelosi said she wants to make the DJIA fall a few thousand points before Spring break.

  • zeroday
    zeroday

    Oil producers shun dollar

    REALLY. THAT'S THE BIGGEST JOKE YOU HAVE POSTED SO FAR. OIL PRODUCERS SELL TO THE GREATEST MARKET ON EARTH AND THEY SHUN THE DOLLAR. WHAT DO THEY EXPECT TO BE PAID IN PESOS. YEA RIGHT.

  • jayhawk1
    jayhawk1

    U.S. Recession Ahead, Researcher Forecasts
    Published: 12/26/2006 6:15:02 AM

    http://www.fox6.com/business/story.aspx?content_id=35896146-59B2-4118-9BBD-C9D76047E49F

    United Press International

    The United States will slide into a systemic recession influenced by high consumer debt and low incomes in 2007, a leading trends researcher predicted.

    The paycheck-to-paycheck public will feel the pinch in their pocketbooks and businesses will be hit hard in their bottom lines long before recession becomes 'official,' the quarterly Trends Journal forecasted.

    The U.S. middle class will generally sink deeper into a financial hole, even as most people, particularly in the service economy, work longer at their jobs, while the rich will continue amassing wealth, the publication of the Trends Research Institute said.

    At the same time, a medical tourism trend is predicted to grow as U.S. consumers seek out overseas doctors to perform procedures not readily available or not covered by insurance.

    Like executives and entrepreneurs that scour the earth to find the best countries to do the best deals for the best price, today's consumers are globetrotting to find the best prices for the best medical treatments, the Journal said.

  • jayhawk1
    jayhawk1

    Excellent point Arthur. With that I say, "Thank you Democrats!" Bush would prefer to put off balancing the budget until 2012, but hopefully the Democrats can make that happen sooner.

    Bush’s ‘zero deficit’ pledge challenged

    By Krishna Guha in Washington

    Published: January 3 2007 19:08 | Last updated: January 3 2007 19:08

    Prominent Democratic economists on Wednesday challenged President George W. Bush’s pledge to present a budget next month that would cut the federal government deficit to zero by 2012 while making tax cuts permanent.

    Jason Furman, director of the centrist Hamilton Project, said: “There will be a lot left out and I would bet it relies on deep, unspecified and improbable cuts in future discretionary spending.”

    He challenged Mr Bush to state specifically which programmes would bear the cost of spending cuts in all the years to 2012.

    Jim Horney, a senior fellow at the Center on Budget and Policy Priorities, said the White House budget would not deal with the need to pay for a fix to the alternative minimum tax (AMT), which is catching a growing number of middle-class families. And he warned that it would not make adequate allowance for uncertain future costs in fighting the “war on terror”.

    The sceptical response follows the president’s commitment in an article in the Wall Street Journal on Wednesday to set out a plan to “balance the federal budget by 2012 while funding our priorities and making the tax cuts permanent”.

    A White House spokesman told the FT on Wednesday “it is an achievable goal” and pointed out that the Bush administration had achieved its previous promise of halving the deficit by 2008 a year early.

    The year 2012 is an obvious medium-term target for balancing the budget, because it already shows the narrowest deficit on current forecasts: $54bn according to projections by the non-partisan Congressional Budget Office.

    However, the CBO estimates that the deficit in 2012 would be $284bn higher if the Bush tax cuts are made permanent, even before allowing for any higher debt interest payments.

    Economists on both sides of the political divide, and people close to the administration, expect the Bush proposal will bridge this gap by:

    •Proposing real-terms cuts for much of non-security related discretionary spending.

    •Budgeting for a gradual reduction in spending on the wars in Iraq and Afghanistan, compared with the CBO baseline.

    •Assuming slightly slower growth in spending on Medicare, which has come in lower than expected over the past year.

    •Upgrading revenue forecasts in the light of the surprisingly high growth in tax receipts over the past two years.

    In addition, there is unlikely to be any provision for fixing the AMT in the later years.

    The White House spokesman refused to comment on any specifics, but said Mr Bush believed it would be possible to support his policy priorities with “limited growth in new spending” by redirecting resources from other programmes.

    He said the president continued to view defence spending as his “number one priority” and something “that should receive the fullest funding”.

    A former budget official said only the detail of the president’s budget proposal would show whether he was serious about cutting the deficit.

    This would require putting forward policies that could be passed by a Democratic Congress in the remaining two years of the administration, rather than relying on deficit reduction under his successor as president.

  • zeroday
    zeroday

    The United States will slide into a systemic recession influenced by high consumer debt and low incomes in 2007, a leading trends researcher predicted.

    A LEADING TRENDS RESEARCHER PREDECTED. AND EXACTUALLY WHO IS THIS 'LEADING TRENDS RESEARCHER' YOU DO NOT QUOTE. I'M SORRY JUST THROW OUT SOME 'LEADING TRENDS RESEARCHER' AND WE ARE EXPECTED TO BELIEVE YOU....

  • zeroday
    zeroday

    former budget official said only the detail of the president’s budget proposal would show whether he was serious about cutting the deficit.
    FORMER BUDGET OFFICIAL. WHO EXACTLY IS THIS FORMER BUDGET OFFICIAL. YOU ARE SO QUICK TO THROW OUT QUOTES FROM UNNAMED OFFICIALS WHY IS THAT. WHO ARE THESE UNNAMED OFFICIALS AND WHY ARE YOU AFFRAID TO NAME THEM..........

  • jayhawk1
    jayhawk1

    Zeroday, are you still talking to me? Why?

    Forgive me, but I will assume you are talking to me. So why have I refused to name names? Because I didn't write any of the above news articles. Do you see the little blue hyperlink lines? If you click on those you will be taken to the site that I copied and pasted the article from. That's how the internet works! Furthermore, I don't like the embedded page option this website offers.

    By the way, where is your evidence to prove me wrong? Don't have any do you?

    Sorry to break my silence to you, but I didn't want you to feel lonely.

  • zeroday
    zeroday
    Because I didn't write any of the above news articles.

    Ofcourse you did not write the above news articles. But you are sure quick to quote them all nonquotes and such. Doesn't matter that they or you can not quote the sources just quote them as fact and that's that. Right. Who will bother to delve deeper to question who exactly the sources are right. QUOTE AND FORGET you are following the typical NEW YORK TIMES method of reporting.

Share this

Google+
Pinterest
Reddit