World Reacts to US Deficits

[LynnsABCs]

[red ufo]

When Mexico Paseo passes the buck will Mexicans come here to blow money and treat us as cheap labor. Or will the cons realize the fatal mistake of voting for the monkey again.

All BS aside. There is little the monkey can do to stop this trend. Its a $result of NAFTA, and WTO. Its only going to get worse and worser as illegals poor in, jobs poor out, the middle class because the working poor.

[widebody911]

It's Clinton's faul - no, really, it is!

[lendaddy]

I think it's funny to hear liberals piss and moan about too much spending It's refreshing to agree for once.

[concentric]

There's an upside:
Foreign purchases of US made goods are going to go WAY up. Hopefully that might help the manufacturing industry a bit.

JCM

[tabs]

You boiyz should read Louis Naviler....

[concentric]

Originally posted by tabs
You boiyz should read Louis Naviler....

From this month's Marketmail. It's Navellier, http://www.navellier.com

"Friday, however, was a totally different story after Alan Greenspan warned at the G20 meeting in Berlin that the U.S. current account deficit is unsustainable. The deficit is around $600 billion, all of which needs to be financed by foreigners. Greenspan also alluded that he expects the dollar to get pressured lower as a result. Investors suddenly became alarmed about not only the dollar, which, by the way, fell to a four and a half year low against the yen, but interest rates, too. After all, if the dollar is primed for weakness and inflation is rearing its ugly head, the Fed is almost guaranteed to continue to raise rates.

In fact, Greenspan commented about worldwide interest rates by saying higher rates “have been advertised for so long that anyone who has not hedged his position by now is obviously desirous of losing money.” The fed funds futures contract is pricing in a 90%+ probability for another 25-basis point rate hike from the Fed on December 14 and about an 85% probability for 25-basis points more in early February. The 10-year Treasury yield popped from 4.117% to 4.196% on Friday, though it was flat for the week.

CONCLUSION

We appear to be heading toward a climate that has higher interest rates and a weaker dollar. This will certainly cause the stock market to get even narrower than it already is. Investors will need to be careful moving forward. Picking not only the right stocks but also the right sectors will be critical"

[cegerer]

That story is from Agence France-Presse ....... take it with a grain of salt.

[EdT82SC]

Originally posted by lendaddy
I think it's funny to hear liberals piss and moan about too much spending It's refreshing to agree for once.

I don't think too much spending is a liberal or a conservative thing. It's a politician thing. When liberals control both houses and the presidency they spend too much. When conservatives control both houses and the presidency they spend too much. The only thing those guys disagree on is what to spend on. They both want to spend as much as they can get away with. In my opinion, the only reason Clinton was able to balance the budget is because control was split, they couldn't agree what to waste our money on, and so less got spent.

And BTW, don't blame me. I voted for Badnarik.

[concentric]

Originally posted by EdT82SC

And BTW, don't blame me. I voted for Badnarik.

Hear hear, same here.

[RoninLB]

Greenspan is covering hiss ass with bs. He's been over-pumping cash into the system for over 2yrs. The early indicator of this was the increase in gold and his refusing to raise the Fed Funds rate. He's been following the market rates not leading them.

[bryanthompson]

It takes a lot of money to completely buy the democrats' entire agenda

[speeder]

I don't think that Bin Laden in his wildest dreams thought that those planes would not only topple the twin towers, but provide an excuse for Bush to run our future into the ground. I'm afraid that B.L. will go down in history as the unintentionally most successful tactician in the history of modern warfare. What a nightmare.

[lendaddy]

Me thinks there's a whole lotta over reactin goiing on out there.

[red ufo]

Originally posted by speeder
I don't think that Bin Laden in his wildest dreams thought that those planes would not only topple the twin towers, but provide an excuse for Bush to run our future into the ground. I'm afraid that B.L. will go down in history as the unintentionally most successful tactician in the history of modern warfare. What a nightmare.

Scary and very true. I'm sure his plans are not to attack in body count numbers but to hit us in the wallet somehow.

We'll probably never kill UBL the iron triangle needs somebody like him to thrive on. However UBL might die from laughing so damn hard at us every day.

[RoninLB]

Bush has pissed off a whole lotta people. He spent beltway pork before the Reps or Dems got a chance to spend it. He pissed off the Euro ministers by not trying to curtail Greenspan from over-pumping the money supply, thus disabling Europe to compete with their restrictive labor and welfare laws. The Dems are also pissed off because the deficit is declining due to US growth.

Bush was never caught in the "We'll fix it" Washington establishment politics.. I mean that the stupid cowboy goes home or retreats to Camp David on weekends. That means the "faces" don't get to go to those preidential state dinners where PR pics and statements get written up in the newspapers. Worse is that most of the whole Senate is "establishment", along with lobbyists, lawyers, consultants, and the press. Not only is he tossing out the political pros in the State Dept & CIA, but the Washington Post & NY Times can't "fix it". It gets worse still. He's sent his staff to take over Cabinet posts. Poor Mr Powell was the last significant "establishment" mouth in DC. And what did that disrespectful Bush do? He tossed Powell out at the first chance. Thus denying him the chance to close up "loose ends" at the State Dept. Just because Powell disagreed with Bush on every issue is no reason for that to happen. Poor Mr Establishment.

Bush is so stupid that he flaunts confidence. He really thinks he'll be successful in his second term. He doesn't even care that the "establishment" is being threatened by his actions. Bush is reaching farther than Reagan.. dam that cowboy.

[speeder]

Well, it was one thing to run up the deficit in the good ole' pre-NAFTA/European Union/China as a non-entity days, when the average shmuck could afford a house in CA. and a gallon of gas+ healthcare, but now it's a recipe for implosion. The fallout will make AQ/terrorism look like a picnic, in terms of affecting our way of life. (No disrespect intended for victims of terrorism, I'm just talking #s of people affected).

I'm not going to say that Kerry would have fixed anything, Bush is our President now and he should fix what he broke, under the Powell/Pottery Barn theory. And that would be the economy and our currency.

[lendaddy]

Is the sky falling? If so, please keep me updated as I have travel plans, thanks

[5axis]

Working in manufacturing I watched many large auto related projects skip over the border to canada because of the currency valuation issue. There were some other issues dealing with Gov backed loans and such but mostly it was simple $ I have no problem with our currency falling back into line. The japanese have been keeping their curency down for quite a while and those of us who had ties to auto related things have been aware of it. No one else seemed to care about that as long as you got a decent price on your (fill in the blank japanese auto).

[fintstone]

Things are going great! Don't be fooled by naysayers...and don't invest in bonds. The weaker dollar is no accident and certainly no surprise.