Back Again - Dollar Down - DJI Up
We have a mixed market! The dollar has been hit for a number of reasons. Several are, as follows:
1) The escalating trade deficit, 2) A fall in foreign purchases of U.S. securities for the past two months (Thus, we may be reaching the point at which this foreign financing will not support our deficit.), 3) Many analyst believe we have reached or are at the end of interest rates hikes with the difference between ours and the rest of the world shrinking, 4) Our overall debt of about $40 Trillion, and 5) There is a growing sentiment in Congress to "keep America American" with threat of barriers to foreign investment.
Due to these challenges and our War on Terror, the dollar took the largest drop in three weeks. For about 30 years, I have been expecting the dollar to head to the dump. This has yet to, if it ever will happen! Of course, one must realize that it is not in the best interest of other central and government banks for the dollar to drop precipitously. They would like to see the dollar continue slowly down over time to preserve the value of their reserve dollars.
China has moved more into the machinery and capital manufacturing sectors of late. This has been an area giving German industry a great deal of income. Thus, we see China expanding into yet another market area. We have spoken about China's wisdom in going around the world buying sources of natural resource, including energy. The Chinese have shown great wisdom in movement toward a freer economy and even opening theirs more to outside investments. Look at the way they have managed Hong Kong without interrupting one of the greatest free markets of the world. The middle class in China is showing great improvement, mainly in the larger cities. This has created a large domestic market for consumer goods.
Gold spent most of the week between the narrow range of $550 and $555 closing at $554. Gasoline at the pumps enjoyed an increase with the range here about $2.29+ on the lower side. That's up about fifteen or so cents from the week before. The DJI reached and stayed above 11,000 most of the week ending on the high side.
The Iranian situation has not cooled here and in Iran. However, much of the rest of the world seems to believe both sides should let it cool. On the surface, it seems that both the U.S. and Iran have rattled the sabers so much that neither could back down without "losing face".
By the way, I saw a mention that the Iranian Oil Bourse is on indefinite hold. That may temporarily ease another potential slap against the dollar.
We had a wonderful worship service today during which we praised the Lord for His goodness to us, confessed our sins, heard the word preached, sang hymns of praise, and celebrated the Lord's Supper in remembrance of Jesus Christ our Sovereign King. I hope an pray that each of you did the same.
Best to each, Doug
1) The escalating trade deficit, 2) A fall in foreign purchases of U.S. securities for the past two months (Thus, we may be reaching the point at which this foreign financing will not support our deficit.), 3) Many analyst believe we have reached or are at the end of interest rates hikes with the difference between ours and the rest of the world shrinking, 4) Our overall debt of about $40 Trillion, and 5) There is a growing sentiment in Congress to "keep America American" with threat of barriers to foreign investment.
Due to these challenges and our War on Terror, the dollar took the largest drop in three weeks. For about 30 years, I have been expecting the dollar to head to the dump. This has yet to, if it ever will happen! Of course, one must realize that it is not in the best interest of other central and government banks for the dollar to drop precipitously. They would like to see the dollar continue slowly down over time to preserve the value of their reserve dollars.
China has moved more into the machinery and capital manufacturing sectors of late. This has been an area giving German industry a great deal of income. Thus, we see China expanding into yet another market area. We have spoken about China's wisdom in going around the world buying sources of natural resource, including energy. The Chinese have shown great wisdom in movement toward a freer economy and even opening theirs more to outside investments. Look at the way they have managed Hong Kong without interrupting one of the greatest free markets of the world. The middle class in China is showing great improvement, mainly in the larger cities. This has created a large domestic market for consumer goods.
Gold spent most of the week between the narrow range of $550 and $555 closing at $554. Gasoline at the pumps enjoyed an increase with the range here about $2.29+ on the lower side. That's up about fifteen or so cents from the week before. The DJI reached and stayed above 11,000 most of the week ending on the high side.
The Iranian situation has not cooled here and in Iran. However, much of the rest of the world seems to believe both sides should let it cool. On the surface, it seems that both the U.S. and Iran have rattled the sabers so much that neither could back down without "losing face".
By the way, I saw a mention that the Iranian Oil Bourse is on indefinite hold. That may temporarily ease another potential slap against the dollar.
We had a wonderful worship service today during which we praised the Lord for His goodness to us, confessed our sins, heard the word preached, sang hymns of praise, and celebrated the Lord's Supper in remembrance of Jesus Christ our Sovereign King. I hope an pray that each of you did the same.
Best to each, Doug
posted by Doug @ 4:32 PM
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