Despite String Of Positive Developments People Still Think Economy Sucks

[Miro Satan Fan]

WASHINGTON (http://news.yahoo.com/news?tmpl=story&u=/ap/20050813/ap_on_go_su_co/bush_s_economy_1) - The war in Iraq and the soaring price of gasoline are drowning out a succession of positive reports on the economy, putting President Bush on the defensive at a time when he could be basking in good economic news.

Despite months of economic growth, tame inflation, resurgent job growth and an unemployment rate near a four-year low, public approval of Bush’s handling of the economy is at the lowest levels of his presidency.

That has left his supporters perplexed over why Bush hasn’t gotten more credit for the improving economy.

But analysts suggest a host of reasons — including anxiety over terrorism and the Iraq war, soaring gasoline prices and high levels of mortgage debt in an environment of increasing interest rates.

I could think of a few reasons myself. Like maybe the fact that good economic news doesn’t get much, if any, media play. And when it does its usually couched along with something negative, like “Unemployment Plummets While Soldiers Die Needlessly In Iraq.”

Well, maybe not quite that bad, but you get my drift. The truth of the matter is that the media is very interested in good economic news. At least they haven’t been during this President’s administration.

How can you expect Americans to feel good about their economy when most of what they hear about it is negative?

[Count Rugen]

Maybe you should take a look at how the dollar is doing in the foreign exchange market. It's tanking. Everytime a company announces their profits, good or bad, their stock takes a hit. Why? Because the US economy is in a very fragile state. I see it everyday.

[Miro Satan Fan]

Hahhahaahahahaha
My dollar are doing great on foreign exchange markets. My dollars and my profits are sky rocketing in my stocks here and abroad.

[Count Rugen]

Hahhahaahahahaha
My dollar are doing great on foreign exchange markets. My dollars and my profits are sky rocketing in my stocks here and abroad.
Are you joking? The dollar took a beating this week. It's down over 50 pips while the GBP, CAD and CHF are soaring. The Yen had a bad week as well.

[Miro Satan Fan]

Are you joking? The dollar took a beating this week. It's down over 50 pips while the GBP, CAD and CHF are soaring. The Yen had a bad week as well.

Hahahahahahahahahahahaha :icon_lol:
Until you learn about the markets and overseas exchange rate, don't committ on this thread or the economy. HAhahahahahahahahah :icon_lol: Here is lesson number one when gas prices soar the dollar goes up. Sterling(GBP) and Swiss Francs(CHF) are now pointless in the markets since the Euro is bringing those down and pointless. Yen is the worst , because the Yen never has a good week. As for my Dollars in the market In one little stock my dollar equals $3.13 so I say that is pretty good as for the other four I am making the cash so I can't complain.

[Count Rugen]

Wow, I guess the time I spend trading the ForEx market every morning isn't nearly as all encompassing as your FIVE stocks.
You would be right about the dollar, except for the fact that it's dropped consistently all week influencing many investors, myself included, to short the dollar and make a killing. Your asseriton that the Swissy and the Pound are pointless shows your own ignorance to the ways of foreign currency. The pound is still one of the most traded currencies and it's ups and downs are oftentimes a precursor to the activity of the Euro, not vice versa.
So, in conclusion, one reason the US economy is not strong is because the people of the US and abroad have very little confidence in it's currency.

On a side note, you really should check out the foreign exchange markets in lieu of trading equities. There's a lot more risk, but the reward and the leverage are light years beyond the equities trade.

[Wadi66]

You would be right about the dollar, except for the fact that it's dropped consistently all week influencing many investors, myself included, to short the dollar and make a killing. China depegging the Yuan hasn't helped.

China Ends Yuan Dollar Peg, Shifts to Currency Basket (Update7)
July 21 (Bloomberg) -- China ended its decade-old peg to the dollar and said it will let the yuan fluctuate versus a basket of currencies, responding to criticism from the U.S. and Europe that its currency was undervalued.

The new yuan rate strengthens the currency by 2.1 percent to 8.11 per U.S. dollar immediately, the People's Bank of China said on its Web site. Until now, the yuan had been pegged at about 8.3 per dollar. The bank said it will continue to maintain a trading band of 0.3 percent.

The yen rose against the 16 most actively traded currencies and had its biggest gain against the dollar in 2 1/2 years. The yield on the 10-year Treasury note rose 5 basis points to 4.21 percent.

``This was the first step in a series of revaluations that we can expect in the coming years,'' said Paresh Upadhyaya, a currency portfolio manager who is part of a group that oversees $29 billion at Putnam Investments in Boston. ``They'll be gradual.'' Malaysia followed China's decision, abandoning its seven-year-old practice of pegging the ringgit to the dollar.

Letting the yuan strengthen may help President Hu Jintao control inflation by reducing the cost of imported products such as oil and copper, which are priced in dollars. It also gives the central bank, which has sold yuan to prevent the currency from appreciating, more scope to increase interest rates to cool an economy that expanded 9.5 percent in the second quarter.

`More Flexibility'

The yen gained against the dollar after China's decision, strengthening to 111.81. The Singapore dollar also gained and Treasury notes declined.

``What they're really doing is leaving the door open to further revaluations,'' said Jens Nordvig, a currency strategist at Goldman Sachs Group Inc. in New York. ``By not pegging the yuan to the dollar, it gives the Chinese more flexibility to engineer a gradual appreciation.''

Permitting the yuan to trade more freely would also answer criticism from the Bush administration and some members of the U.S. Congress that blame China's currency policy for a record trade deficit and the loss of 2.8 million manufacturing jobs.

The Treasury Department's twice-yearly review of exchange rate policies said last month that China needs to make the yuan more flexible or risk being branded a currency manipulator.

``China is now ready and should move without delay in a manner and magnitude that is sufficiently reflective of underlying market conditions,'' Snow told the Senate Finance Committee in Washington on June 23. ``Implementation of trade sanctions would lead to retaliatory policies against our exports, damaging the U.S. and global economy.''

Trade Deficit

The U.S. trade gap with China rose to a record $162 billion last year and the National Association of Manufacturers, a lobby group, expects it to grow to $225 billion this year.

Indiana Democratic Senator Evan Bayh and Maine Republican Senator Susan Collins presented legislation on June 23 that would let companies petition for duties on Chinese goods to compensate for government subsidies. The bill is one of more than a half- dozen in Congress that address what some lawmakers call China's unfair trade practices.

Currency Basket

Linking the yuan to a basket of currencies means China's currency wouldn't be tied so closely to swings in the dollar, said Adam Cole, a currency strategist at RBC Capital Markets Ltd. in London. The basket will probably be composed of the euro, yen and other Asian currencies as well as the dollar, he said.

``For instance, if we went through a prolonged period of dollar downward pressure then the yuan would feel all the pressure of that, but if it was using basket, then the move would be offset by other currencies doing better,'' said Cole. ``It's an easier way to manage a currency target.''

Singapore manages its currency by allowing it to fluctuate against a group of the nation's major trading partners. The Monetary Authority of Singapore, which reviews its policy every six months, hasn't disclosed the composition of the basket.

Investors have bet on a change in China's currency since 2002.

``If you let the exchange rate become more flexible, there is one clear direction it's going,'' said Marvin Barth, a currency strategist in London at Citigroup Inc., the world's largest bank. He spoke in an interview last month.

Investment in China

China's $1.6 trillion economy, which accounted for a 10th of world growth last year, has trebled in size since the yuan peg was introduced. Foreign direct investment jumped 14 percent to a record $60.6 billion in 2004, according to government figures. A year earlier, China surpassed the U.S. as the biggest recipient.

The People's Bank of China has to buy dollars that flow into the country to maintain the currency peg, adding yuan to the economy and diluting the impact of state lending curbs. The central bank spent $193 billion buying foreign currency in 2004, a 41 percent increase from a year earlier, it said on Feb. 28.

The central bank raised its lending and deposit rates on Oct. 28, the first increase in a decade, to complement limits on investment in property, steel and autos that have driven prices higher and strained power supplies.

``The next move is that people will estimate the stronger yuan's impact on the growth rate,'' said Steven Chang, vice president of global markets at State Street Bank & Trust Co. in Hong Kong. ``They may think the growth rate is going to slow down and wonder if it is going to be so much more positive for the Asian currencies.''

China is seeking to cap inflation at 4 percent this year from a peak of 5.3 percent in August. Inflation in 2005 is likely to slow to between 3.0 percent and 3.5 percent, the People's Bank of China said on June 14. The consumer price index climbed 1.8 percent in May from a year earlier, the National Bureau of Statistics said on June 13.


And then there is always this
http://www.financialsense.com/fsu/editorials/schiff/2005/0728.html

[Miro Satan Fan]

Wow, I guess the time I spend trading the ForEx market every morning isn't nearly as all encompassing as your FIVE stocks.

Out of curiousity, what ForEx market are you doing business with? Open? Broker? Investment? Bullion? Capital? KKI? Managed? Vantage? GCI? or my personal, ISUP? Just curious.

[teens4bush]

The mistake liberals make when it comes to economy is this: they always point to how much the GOVERNMENT is bringing in and spending. They judge the economy by defecit-surplus instead of what the PEOPLE are doing with their money (ie buying stocks, houses).

[Count Rugen]

Out of curiousity, what ForEx market are you doing business with? Open? Broker? Investment? Bullion? Capital? KKI? Managed? Vantage? GCI? or my personal, ISUP? Just curious.
Are you asking who my broker is? That would be FXCM.
If you're asking what kind of ForEx I'm trading, that doesn't make a lot of sense to me. Maybe you could enlighten me?

[Miro Satan Fan]

Are you asking who my broker is? That would be FXCM.
If you're asking what kind of ForEx I'm trading, that doesn't make a lot of sense to me. Maybe you could enlighten me?

Saying you're trading on the ForEx is like saying you are going to the store. What store are you going to? Wal-Mart? K-Mart? Target? Keinos? the drug store? gun store? So what ForEx are you trading on?

[FKLBRLS]

It's good to see unemployment down, tame inflation, and economic and job growth. Too bad it isn't as widely reported.

The mistake liberals make when it comes to economy is this: they always point to how much the GOVERNMENT is bringing in and spending. They judge the economy by defecit-surplus instead of what the PEOPLE are doing with their money (ie buying stocks, houses).
The same thing happened during the Reagan administration. Although the economy itself was doing well, the federal budget was slumping and as a result liberals thought the shit had hit the fan and were in an uproar about how "terribly" the economy was doing.

[Count Rugen]

Saying you're trading on the ForEx is like saying you are going to the store. What store are you going to? Wal-Mart? K-Mart? Target? Keinos? the drug store? gun store? So what ForEx are you trading on?
Spot ForEx. I work with a girl who develops software for trading the ForEx and she's never heard of ISUP or KKI.

[Miro Satan Fan]

Spot ForEx. I work with a girl who develops software for trading the ForEx and she's never heard of ISUP or KKI.
Well they are there, I work with both of them on the Chicago Mercantile Exchange.I didn't not ask for the trader you trade w/, I want to know what kind of ForEx do you do...i.e..Open?Broker? Investment? Chorek? Bullion? Capital? KKI? Managed? Vantage? GCI? my personal, ISUP? or Contract of Difference? If I wanted to know what trader I would ask but I didn't, I ask what is your trading style. So let me get this is Spot-FedEx your trader, or do you invest in the FedEx Spot and Option w/ the OTC benefits?

[Count Rugen]

Well they are there, I work with both of them on the Chicago Mercantile Exchange.I didn't not ask for the trader you trade w/, I want to know what kind of ForEx do you do...i.e..Open?Broker? Investment? Chorek? Bullion? Capital? KKI? Managed? Vantage? GCI? my personal, ISUP? or Contract of Difference? If I wanted to know what trader I would ask but I didn't, I ask what is your trading style. So let me get this is Spot-FedEx your trader, or do you invest in the FedEx Spot and Option w/ the OTC benefits?
I trade only the currency exchange market, not the futures or commodities. According to my broker it's all Spot ForEx (like I said in the last post).

Dollar had a bit of a day today, didn't it?

[Miro Satan Fan]

According to my broker it's all Spot ForEx (like I said in the last post).
Spot FedEx is an online broker publication. FedEx Spot and Options deals with Asia. Usually Omnicom is a name in advertising you would hear about.

I trade only the currency exchange market, not the futures or commodities
That would be called an Open FedEx, and that was all I was asking.