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The Limited Shelf Life of Dollar Fruit
Today, we’ll keep it short and sweet.
The Dow managed only a piddling 32-point rise yesterday; still no recovery from last week’s big losses.
Oil rose another $1.30 – to close over $141. Gold jumped $16; it will now cost you $944 to buy an ounce.
“Caught between a fragile economy and banking system and rising inflation,” writes James Saft, “Bernanke and other Fed policy makers seem to have arrived on a strategy of jawboning the dollar higher and inflation lower.
“But talk is only effective if your audience judges that you have the means and willingness to follow through.”
Based on the last few…
3Jul2008 | Daily Reckoning | Comments Off | ContinuedAs China’s Consumers Start Spending More, U.S Consumers Will Begin to Feel the Global Economic Squeeze
As China grapples with the consequences of its devastating earthquake, it finally also has begun to confront the destabilizing forces bubbling that are bubbling up from beneath its economic landscape.
Last week, several key Chinese officials, typically not known for their candor, conspicuously noted the need to both stimulate domestic consumer spending and to bring down roaring inflation. While at first blush these two goals might appear mutually exclusive, China’s leaders do have a “magic bullet” that can hit both targets at once.
The Easy Way vs. The Hard Way
A stronger currency, commensurate with China’s increased economic strength, will simultaneously tamp down…
19May2008 | Money Morning | Comments Off | Continued
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