| Dollar Declines As Housing Outlook Worsens
The loose thread from last week's solidly packed economic calendar, Monday's new home sales report tipped the scales for fundamentalists torn between strong lagging indicators and a distinct cooling in more timely reports. After the worse-than-expected number hit the wires, the dollar cut its two session advance short with big moves across the majors. For EURUSD, the data was met with a 70-point rally to a 1.3350 high that was 100 points off of overnight lows. In a more intense dollar move, USDCHF slid 85 points in 30 minutes to test key support around 1.2120/10. Making a technical move of its own, GBPUSD extended a rally that began in the London session for a 140-point climb to mark a double top with Thursday's high at 1.9725. Finally, USDJPY continues to carve out a convincing ascending triangle following a test high around 118.45 and a subsequent turn around 117.65.
Fed Signaling Future US Interest Rate Cuts - Gold to benefit
In a series of public messages, the US Federal Reserve has issued some statements recently which telegraph an increasingly likely official interest rate cut. These guys will cut rates, but only when kicking and screaming, since they have displayed extreme reluctance at every opportunity. They know the damage to the US Dollar certain to follow. They speak through their usual mouthpieces, but this time with the added impact of Sir Alan Greenspan, serial bubble engineer extraordinaire. One must connect the dots, a task now routine among my methods, putting to practice the motto “think like a thief" in order to properly gauge the enemy. Why? Because the integrity of the US financial system, economic management, and leadership is as low as a snake's belly slithering in the grass.
Come Out With Your Nukes Up!
Look at a map of the Middle East and find our two main warzones. Iraq on the left, Afghanistan on the right and- hello!- Iran in the middle. And to the south, the Persian Gulf where we've recently sent some more of our naval might to fortify the zone. We've got Iran surrounded, and this may be the most important reason that BushCo will not pull out of Iraq. .
Ag business attracting more attention, investment
MUNCIE -- There were more business suits and fewer work boots evident, but agriculture and the industry's future was the focus of a day-long local conference Thursday. About 200 people attended "Cultivating the New Economy: Agriculture in the 21st Century," held Thursday at the Horizon Convention Center. .
'Deep Economy' by Bill McKibben
"Deep economy" is a riff on "deep ecology," a philosophical and scientific perspective that views humankind as but one species in the grand web of life. Ecology, of course, refers to the intricate pattern of relations between living entities and their environment. We most often use the word "economy" to refer to "the structure of economic life," to quote Webster's. But economy derives from the Greek word oikonomia, which translates as "household manager." The archaic definition for economy, therefore, is management of a household. The second definition is "thrifty and efficient use of material resources." The latter is the exact opposite, as Bill McKibben so vividly illustrates, of today's growth-focused global economy.
The fact that we envision the economy as an almost mystical mega-force that dominates every aspect of our existence, rather than something within our control, is one motivating factor for McKibben's masterfully crafted, deeply thoughtful and mind-expanding treatise.
Economic issues preoccupy SAARC Summit
New Delhi, Apr 5: Economic issues dominated the just concluded 14th SAARC Summit with India's decision to unilaterally liberalise tariffs for the Regions LDCs being the cornerstone of the event, and a roadmap to be chalked out for a South Asian Customs Union and an ultimate Economic Union as the future goals.
India's decision to provide a zero duty regime would benefit the poor countries of Afghanistan, Bangladesh, Bhutan, Nepal and the Maldives.
India already has a Free Trade Agreement (FTA) with Sri Lanka and the entirety of the proposal implies a Free Trade Area as far as India is concerned, barring, of course, Pakistan.
Prime Minister Manmohan Singh also promised to reduce the size of the negative list with these countries.
The fact of the matter is that Pakistan has yet to provide Most Favoured Nation (MFN) status to India, even though the latter did this decades ago to its neighbour.
Labour laws stalemate
TWO sets of intriguing figures have exposed a paradox for the Howard Government and Rudd Labor Opposition over industrial relations. It seems likely the fight over John Howard's Work Choices reforms is nowhere near as simple or as negative for the Coalition as it first appeared. .
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