Mr. G

Unemployment: It's Even Worse than You Think

Gee, I commented yesterday about economic policy and the overseas migration of the mfg companies and everyone jumped down my throat. Nice to see rational discussion on the subject.

Is the Hated U.S. Dollar About to Rally?

Regarding the comments about raising the FED rate ,I recall lowering as being a stimulus to the US economy because it encourages easier lending to stimulate business. In the current environment, raising the rate would be detrimental until banks lend again, which they are not.

Raising the rate is frequently a response to slow the economy down to prevent inflation. As anyone can see, traditional thinkinking suffers when the markets are out of wack. GI

Is the Hated U.S. Dollar About to Rally?

Everyone talks about the dollar as if there is some overseer at a master contol switch that makes the decision while forgetting that the dollar index is traded against a basket of currencies, and its fair market value is determined by traders who determine the dollars value by market psycology, that is, the majority of traders controlling the direction of price.

The recent trend reversal was probably a massive liquidation by short sellers covering their bets because of all the chatter about dollar reversal. As the US economic indicators reveal confusing news, I would expect the dollar to consolidate which appears to be the case now. Traders are looking for positive news from the economic indicators before they are willing to bid the dollar higher.

How Long Can Rumors Keep the U.S. Dollar on the Decline?

From a fundamental standpoint, I believe we have to accept that the US may not be as influential economically as it once was. The larger BRIC nations grow, their fundamentals will have a rising affect on currency value and the dollar is slowly losing supremecy status.

Fed Funds Futures Predicting Strong Chance of September Rate Hike

Considering the current account deficit, raising rates and printing more money to pay debts by the FED spells trouble longer term for the US.

Bernanke Brushes Aside Inflation, Focuses on Growth

Inflation is caused by too many dollars chasing too few goods. As long as supply of anything remains sufficient, and money supply remains constant, inflation shouldnt be a problem. The weakness in the US is printing more money to bailout debt ridden banks which increases money supply.

Did Gold Bugs Miss the Fat Lady?

The most salient point is that gold appears tied to economic parameters perceived in the long term,not short term teasers. As inflation, stagflation, and recession lingo creeps into our mixed views, particularly in th EU and the US, gold appears to be a steady factor to hedge against currency fluctuations and golds ultimate moves may not be tied to just one factor.