Jun 2, 2011
China's Economy Continues to Ascend – But Watch Out for Speed Bumps - Money Morning
"BY JASON SIMPKINS, Managing Editor, Money Morning
Everyone knows that China's economy is hot. The only question is whether it may be a little too hot.
China posted yet another quarter of stellar economic growth in the first quarter of 2011, with its gross domestic product (GDP) growing 9.7%. However, analysts are worried about some of the side effects that have accompanied that growth- namely soaring inflation and the emergence of speculative bubbles.
Inflation in China hit a 32-month high in March, and the country's real estate market is beyond scorching.
Policymakers in Beijing insist they have the situation under control, and they've been trying to rein in liquidity and curb speculation to prove it. That's why China's economy, accustomed to double-digit growth, is only expected to grow 8% to 9% this year."
Everyone knows that China's economy is hot. The only question is whether it may be a little too hot.
China posted yet another quarter of stellar economic growth in the first quarter of 2011, with its gross domestic product (GDP) growing 9.7%. However, analysts are worried about some of the side effects that have accompanied that growth- namely soaring inflation and the emergence of speculative bubbles.
Inflation in China hit a 32-month high in March, and the country's real estate market is beyond scorching.
Policymakers in Beijing insist they have the situation under control, and they've been trying to rein in liquidity and curb speculation to prove it. That's why China's economy, accustomed to double-digit growth, is only expected to grow 8% to 9% this year."
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U.S. Dollar Rebound: Inflection Point Turns The Dollar Into A Winner - Money Morning
"BY JACK BARNES, Contributing Writer, Money Morning
For most of the past year, anything involving the U.S. dollar has been what traders like to refer to as a 'one-way trade.'
And with good reason: Over the past year, the U.S. currency has traded in only one direction - down.
Indeed, during the period in question the dollar is down 8.3% against the British pound, 11.65% against the European euro and 14.2% against the Japanese yen. On a year-over-year basis, the biggest gains against the dollar have been notched by the Australian dollar (20%) and the Swiss franc (26.7%). This freefall by the greenback is part of the reason that gold and silver soared to new records and commodity prices have zoomed during the past year."
.
For most of the past year, anything involving the U.S. dollar has been what traders like to refer to as a 'one-way trade.'
And with good reason: Over the past year, the U.S. currency has traded in only one direction - down.
Indeed, during the period in question the dollar is down 8.3% against the British pound, 11.65% against the European euro and 14.2% against the Japanese yen. On a year-over-year basis, the biggest gains against the dollar have been notched by the Australian dollar (20%) and the Swiss franc (26.7%). This freefall by the greenback is part of the reason that gold and silver soared to new records and commodity prices have zoomed during the past year."
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The "Pesofication" of the U.S. Dollar - Money Morning
"BY MARTIN HUTCHINSON, Contributing Editor, Money Morning
I've dubbed this the 'pesofication' of the U.S. dollar.
But we're really talking here about the dollar's long-term demise.
The pesofication of the dollar represents the end of the greenback as a major world currency and figures to be one of the major long-term challenges that we U.S. investors will face.
The dollar's demise was set in motion several years ago. But the greenback's fate was sealed in late April, when U.S. Federal Reserve policymakers had a final chance to take a stand against inflation - and failed to do so."
I've dubbed this the 'pesofication' of the U.S. dollar.
But we're really talking here about the dollar's long-term demise.
The pesofication of the dollar represents the end of the greenback as a major world currency and figures to be one of the major long-term challenges that we U.S. investors will face.
The dollar's demise was set in motion several years ago. But the greenback's fate was sealed in late April, when U.S. Federal Reserve policymakers had a final chance to take a stand against inflation - and failed to do so."
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