EconomicCrisis.US

The pace of economic decline in western Europe is slowing, data showed on Thursday, though activity is still very subdued and prospects for a global recovery are being hurt by the rising cost of borrowing money.

A sharp rise in U.S. Treasury bond yields has highlighted growing investor concerns about the amount of government borrowing, which is pushing up the cost of debt and has undermined sentiment across world equity markets.

The Organization of Petroleum Exporting Countries (OPEC), citing weak industrial production, shrinking world trade and high unemployment, kept oil production targets unchanged at its meeting in Vienna.
Read the rest of this entry »

In the near-term, the stars are aligned against the US dollar. Sentiment is decidedly negative. If the news stream is good, we are told investors are less risk averse and do not need the dollar’s security. If the news stream is poor, we are told the US is in horrific shape and the budget deficit and Fed’s balance sheet will swell even more.

It is difficult to see what will break this psychology in the coming weeks. The euro could rise toward $1.4600-$1.4800, with sterling headed toward the mid-$1.60s. The dollar also looks poised to fall into the low JPY90 or high JPY80s.
Read the rest of this entry »

With the secret annual meeting of the Bilderbergers for 2009 completed news of their agenda is leaking out, and it is what you might have expected.

In attendance from the United States were such people as Timothy Geithner, Treasury Secretary, who is very connected as his background reveals, having been an ex-employee of Henry Kissinger Associates, a former Clinton Treasury official, a senior executive at the International Monetary Fund (IMF), a member of the Council on Foreign Relations (CFR), and ex-president of the Federal Reserve Bank of New York.
Read the rest of this entry »

U.S. consumer confidence soared in May to its highest level in eight months, suggesting underlying improvement in the economy after a grim first quarter that witnessed a record plunge in home prices.

The Conference Board, an industry group, said on Tuesday its index of consumer attitudes jumped to 54.9 in May from a revised 40.8 in April, well above forecasts centered around 42.0. That was the biggest one-month jump since April 2003 when many Americans believed the war in Iraq was coming to a rapid conclusion.

May’s improvement was a welcome shift from the record low hit in February, and sent stocks surging nearly 2 percent.
Read the rest of this entry »