Trichet steps up the US$ rhetoric
In likely the most pointed, direct message given to the US government in a while on the direction of the US$, ECB Pres Trichet said yesterday, “It is extremely important that the US authorities, including the Treasury, the Secretary of the Treasury and the chairman of the Fed would pursue policies that take into account the fact that a strong dollar is in the interest of the US.” He’s basically telling us that the burden of having the reserve currency of the whole wide world deserves better behavior and we better start acting more responsibly as the policies currently pursued that is resulting in the “excess volatility” of the US$ “is an enemy from the standpoint of the stability and prosperity of the global economy.” My updated earnings scorecard has 86% of companies beating EPS estimates with only 57% exceeding revenue forecasts. IP, consumer confidence and TIC data are all out today.
October 16th, 2009 at 8:08 am
And yet everyone jumps into the market come 2:00pm every day! Pound for pound this is the biggest bubble yet! Nothing in the real economy supports it at all. It is being pushed up by the special interest of Wall Street.
October 16th, 2009 at 8:15 am
The Europeans fuss at us
We fuss at the Chinese
The Chinese are inscrutable
Meanwhile Willie Wonka just keeps producing chocolate for all of us. The whole thing is a chocolate factory, held together with bailing wire and bubble gum. But we have chocolate today!
October 16th, 2009 at 8:23 am
“..as the policies currently pursued that is resulting in the “excess volatility” of the US$ “is an enemy from the standpoint of the stability and prosperity of the global economy.” ”
Yes, the global financial sector has upped its game – but not nearly enough
guardian.co.uk – Oct 4, 2009
The replacement of the G7 by the G20, it is hoped, will improve global governance and make it easier to tackle the imbalances that lay at the root of the …
Video: IMF WORLD BANK DIRECTOR IN ISTANBUL ECONOMY RECOVERY Santa Barbara Arts TV
IMF takes on enhanced global role AFP
IMF assumes major economic role Aljazeera.net
New York Times
all 3,575 news articles »
Troubling Turnover on UN Security Council
Council on Foreign Relations – 20 hours ago
Explore the international finance regime with a new interactive from cfr’s program on International Institutions and Global Governance. …
http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=global+governance
October 16th, 2009 at 8:46 am
Two relevant posts by Michael Pettis:
http://mpettis.com/2009/10/currency-depreciation-and-global-imbalances/
http://mpettis.com/2009/10/china%e2%80%99s-september-data-suggest-that-the-long-term-overcapacity-problem-is-only-intensifying/
This is all a replay of the 1930’s where the slippery French made out better than most by keeping their currency undervalued.
October 16th, 2009 at 8:59 am
How about the Surrender Monkeys pay for their own defense first (i.e., let’s get all our troops out of Europe), and then they can talk to us about our dollar policy?