The U.S. Dollar is under pressure against most major currencies this morning following a rebound in Chinese manufacturing data. The moves seem to be muted however ahead of tomorrow’s elections and Wednesday’s Federal Open Market Committee meeting.
Four key factors in the 1970s were very different from present conditions, and that argues against 1970s-style stagflation as a model for 2010-2020.
Sometimes history rhymes--but only for the first line. On the surface, there are reasons to anticipate a 1970s-style stagflation in the decade ahead: a stagnating economy beset by rising inflation.
In light of the number of manufacturing and goods producing jobs lost in America over the past decade, it’s no wonder why many in Washington and on Main St. are clamoring for a trade and currency war with China. The raucous has grown so loud that Congress, Treasury and the Commerce department may soon be forced to declare China a currency manipulator.
India has said its economy is set to grow by 7.2% in the year to the end of March, raising the chance that state support could soon be withdrawn.Government stimulus measures helped to maintain strong growth during the global downturn, but attention is now turning towards cooling rising prices.Some now expect the government to raise interest rates earlier than expected.
A strong surge in U.K. and China manufacturing data helped to pressure the Dollar overnight. These two better than expected reports triggered renewed interest in demand for higher risk assets. Losses are being limited, however, as traders await this morning’s U.S. ISM Manufacturing Index which will be release at 9 a.m. Central Time.
On the same day as the government stimulus plan passes through the Senate, Intel reveals a stimulus plan of their own. Intel will be upgraded its manufacturing facilities in the west to take the lead in the new era of microprocessor manufacturing.
One of the biggest challenges facing the American economy is that we lack a domestic manufacturing base. Simply put we do not produce anything anymore. We buy tons of foreign goods and then wonder why we are lacking jobs. We import most of our goods which has resulted in a huge trade deficit and industrial job losses.
New stimulus programs and focus on infrastructure projects and cheap valuations means investing in selected manufacturing business will generate great rewards
Worldwide Energy and Manufacturing USA, Inc. (WEMU.OB), a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing, recently announced record revenue and net income for the third quarter ended September 30, 2008.
