Archive for the ‘US Economy’ Category

The Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group each year bring together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness. Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world’s financial system. This year’s Annual Meetings events will take place in Tokyo, October 9-14, 2012.

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UNITED NATIONS, July 20, (KUNA): Iraqi Ambassador to the UN Hamed Al-Bayati late Thursday told the Security Council that his government is “committed” to solving the remaining issues with Kuwait within the framework of the relevant resolutions adopted on the situation between the two countries. “Solving these remaining issues through friendly relations and negotiations is a top priority for us in Iraq,” Al Bayati said in an open meeting by the Council.

“I assure this esteemed Council that there is a positive collaboration and exchange between the Governments of Iraq and Kuwait to settle all the unresolved issues between the two countries” resulting from the 1990 invasion of Kuwait, he said.

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Hold a Board of Directors of the World Bank meeting in Washington on Monday to choose a president of this body that provide assistance for development in a vote likely to win the U.S. Candidate Jim Yong Kim in it.

Faces Kim (52 years), physician and anthropologist who heads the University of Dartmouth in New Hampshire (north east), Nigerian Finance Minister Ngozi Okonjo Aewala (57 years), who worked 25 years at the World Bank. (more…)

Beirut, March 4 (Rn) – in a report on security events that is sweeping Iraq, it was considered the Washington Institute for Near East Policy, U.S. research that years after the U.S. withdrawal from Iraq will experience some negative reactions against the United States, this does not mean that the U.S. influence in Iraq has collapsed, but shows that it should be invested political capital wisely to influence the issues of greatest importance. (more…)

The 7 December 1941 Japanese raid on Pearl Harbor was one of the great defining moments in history.

  • 2,388 Americans died in the attack
  • 1,178 Americans were wounded
  • 21 American ships were sunk or damaged
  • 323 American aircraft were destroyed or damaged
  • 1,177 Americans involved in the attack were serving on the USS Arizona
  • 333 servicemen serving on the USS Arizona survived the attack

Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee hearing on ''Monetary Policy and the State of the Economy'' on Capitol Hill in Washington July 13, 2011. REUTERS/Kevin Lamarque(Reuters) – Growth-linked currencies such as the Australian, New Zealand and Canadian dollars could see fresh selling if Federal Reserve Chairman Ben Bernanke disappoints investors banking on more monetary stimulus to support the slowing U.S. economy.

If the Fed chief does not unveil stimulus measures in his annual Jackson Hole speech on Friday, bets on risky assets, including these growth- or commodity-linked currencies, would unwind, pulling them even further from their historic highs.

Read More:  http://www.reuters.com/article/2011/08/24/uk-markets-forex-commodity-currencies-idUSTRE77N5SH20110824

Zawya Dow Jones/Dubai

Kuwait’s top banker said he remained content with the peg of the dinar to a basket of currencies as it has helped shield the local economy from US dollar fluctuations and increase stability, at a time of volatility in global currency markets.

Kuwait Central Bank governor Sheikh Salem Abdulaziz al-Sabah told Zawya Dow Jones in an emailed response to questions that the dinar’s peg to a currency basket “is assessed as having assisted in shielding Kuwait from the often volatile fluctuations in the values of other currencies, and in turn inducing a measure of stability to the local economy.”

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By Tom Mucha, Global Post

Truth is elusive. But it’s a good thing we have math.

Our friends at Business Insider know this, and put those two principles to work today in this excellent and highly informative little slideshow, made even more timely by the ongoing talks in Washington, D.C. aimed at staving off a U.S. debt default.

Here’s the big idea:
Many people — politicians and pundits alike — prattle on that China and, to a lesser extent Japan, own most of America’s $14.3 trillion in government debt.

But there’s one little problem with that conventional wisdom: it’s just not true. While the Chinese, Japanese and plenty of other foreigners own

http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/

August 22, 2011

Growing concerns about the global economy and the possibility of a new round of stimulus spending in the U.S. sent gold to a new record high just below $1900 per ounce. As of 10:37 AM Pacific Time, gold was trading at $1,891 per ounce on the New York Spot Market, up $37 per ounce, while silver was trading at $43.59, up $0.59.

JP Morgan Chase recently issued a forecast of $2,500 for gold prices before the end of 2011, saying “Before the downgrade, our view was that gold could average $1,800 per ounce by year end. This view will likely now prove to be too conservative: spot gold could drive to $2,500 per ounce or higher, albeit on very high volatility.”

http://bit.ly/nFu0Cz

Today, Monday, August 15, 2011, marks the 40th anniversary of the US default on the dollar’s convertibility into gold. It was the world’s de facto reserve currency and thus began an experiment with a reserve fiat currency that was doomed to failure before it began, because there has never been a successful fiat currency in all of history.

August 15, 1971 was just like any other day for most people, and President Nixon’s unprecedented decision to cut the US dollar’s gold international convertibility was largely ignored by the public. The majority of citizens didn’t understand the implications for their financial future. Contrast that to today, where a historic downgrade of US debt and a very public $2-trillion increase of the debt ceiling dominated headlines and the television news.

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Central bankers are racing to shield their economies from fiscal tightening and lopsided currency swings that threaten a new global recession.

In the 72 hours after a Group of Seven conference call on Aug. 7, theFederal Reserve pledged to keep interest rates near zero through at least mid-2013, the European Central Bank intervened in bond markets and the Bank of England indicated it’s ready to add more stimulus if needed. Japan signaled renewed concern about the yen and Switzerland yesterday stepped up its fight to curb an “overvalued” franc.

Read More: http://www.bloomberg.com/news/2011-08-10/central-bankers-become-tower-of-strength-amid-debt-turmoil.html

KUWAIT CITY, Aug 10: Previously what was thought unthinkable happened. On 5 August 11 evening, Standard & Poor’s lowered the U.S. long-term rating by one level to AA+, while keeping the outlook at “negative” as the agency becomes less confident that Congress will end Bush-era tax cuts or tackle entitlements. S&P also said the U.S. rating may be reduced to AA within two years if spending reductions are lower than agreed to, interest rates rise or “new fiscal pressures” result in higher general government debt.

GCC & World Indices – Day 1 Impact
All the GCC indices retreated as the markets opened after their respective weekend. While TASI had a 5.5% fall on Saturday, a similar story was repeated for other GCC indices on Sunday when they opened with DFMGI falling by 3.7%, ADSMI and DSM falling by 2.5% each, Oman 1.9%, Kuwait 1.6% and Bahrain 0.3%. Ditto was the case with Asia, Europe and US markets when they opened on Monday.

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Aug. 8 (Bloomberg) — The pound is “slowly” becoming an alternative haven currency amid concern that the Bank of Japan and Swiss National Bank will sell their nations’ currencies to weaken them, according to Standard Bank Group Ltd.

Investors fleeing the euro and dollar may buy sterling, Steve Barrow, London-based head of research for Group-of-10 currencies, wrote in an e-mailed report today, citing the U.K.’s “swift” deficit reduction measures and low risk of a credit- rating downgrade.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/08/08/bloomberg1376-LPLR0T1A1I4H01-3K2UP6IDVDU0N8H0AK3K6ASGKT.DTL#ixzz1UWdJYyLS

U.S. debt turmoil may be “tilting” China toward letting the yuan move less in synch with the dollar, which would reduce central bank intervention and slow the growth of foreign reserves, according to Societe Generale SA.

The CHART OF THE DAY shows the People’s Bank of China yuan fixing rate and the U.S. Dollar Index, which tracks the greenback against a basket of currencies of the U.S.’s major trading partners. The relationship between the two “weakened” in the past several months as the debate in Washington about the debt ceiling heated up, said Yao Wei, an economist in Hong Kong at Societe Generale.

Read More: http://www.bloomberg.com/news/2011-08-08/china-s-yuan-policy-probably-tilting-on-u-s-debt-woes-chart-of-the-day.html

Gulf markets tumble as investors dump stocks over eurozone, us fears

Abu Dhabi: The Gulf Cooperation Council (GCC) states, except for Kuwait, which keep their currencies pegged to the US dollar and are major buyers of US government debt will likely maintain the status quo for the foreseeable future despite a downgrade of the world’s largest economy by credit ratings agency Standard & Poor’s (S&P) on Friday.

Officials from the UAE and Oman spoke in support of the US dollar yesterday.

A senior UAE Central Bank official reaffirmed the country’s stance on keeping the dirham’s peg to the dollar intact.

“We are pegged to the dollar and will keep it. We don’t see the dollar collapse. Because the problem is not in the US only, but also in the European markets,” Mohammad Al Tamimi, deputy executive director at the UAE Central Bank’s treasury department, told Reuters.

Read More: http://gulfnews.com/business/economy/gcc-states-to-stick-with-us-dollar-1.848692

(Reuters) – Financial policymakers from the G7 leading industrial nations are expected to hold a teleconference later on Sunday to discuss the financial market turmoil after the U.S. debt downgrade and the worsening euro-zone debt crisis.

The G7 may release a statement. These generally contain broad pledges, such as countries agree to take the appropriate steps on fiscal consolidation to reduce their budget deficits and will coordinate to ensure smooth functioning of financial markets.

Read More:  http://www.reuters.com/article/2011/08/07/us-crisis-g7-options-idUSTRE7762FC20110807

  • الأسواق العالمية تنتظرها خسائر قياسيةConfirmed that the global economy threatened to collapse .. And the dollar is no longer a safe haven
  • Experts call quickly revalue the riyal and the diversification of Saudi investments

August 7, 2011

World markets await record losses
Saudi economists emphasized that the world lost a dollar as a safe haven assuring dealt with over the decades as well as gold in the event of any economic turmoil, and after agencies cut credit ratings mark the public debt of the United States yesterday.

Economists said that the positive results achieved by the Saudi riyal and the national economy over the decades by its association with the dollar is no longer available today, calling for the rapid re-evaluation of the riyal exchange rate, and proceed immediately in the distribution of Saudi investments in more than a basket rather than in one basket is a basket of America “worn”.

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Gulf central bankers were huddled in separate meetings on Sunday to discuss the downgrade, sources said. (File Photo)The United Arab Emirates will keep its currency peg to the US dollar even after Standard & Poor’s downgraded the world’s biggest economy, and Oman sees no risk in investing in US treasuries, officials said on Sunday.

Gulf central bankers were huddled in separate meetings on Sunday to discuss the downgrade, sources said.

All Gulf Arab states, except for Kuwait, peg their currencies to the greenback and their fortunes are closely tied to US developments. Gulf states are also major investors in US treasuries.

“We are pegged to the dollar and will keep it. We don’t see the dollar collapse. Because the problem is not in the US only, but also in the European markets,” said Mohamed Al Tamimi, deputy executive director at the UAE central bank’s treasury department.

Read More: http://english.alarabiya.net/articles/2011/08/07/161213.html

SYDNEY (MarketWatch) — Hong Kong has no plans to de-peg its currency from the U.S. dollar, the city’s finance minister said, but strategists believe the current pairing is outdated and decoupling is only a matter of time.

The depreciation of the U.S. unit is one factor contributing to mounting support to adjust the Hong Kong dollar’s 28-year currency peg. The city is battling high inflation on the back of the dwindling greenback.

But despite the heat, lawmakers have ruled out a shift away from the dollar for now.

Read More: http://www.marketwatch.com/story/hong-kong-under-pressure-to-end-us-dollar-peg-2011-08-03?reflink=MW_news_stmp

The practice of using the U.S. dollar as the world’s reserve currency has become well entrenched in the minds of global investors. In fact, the system has become so habitual that many now believe there is no alternative to owning U.S. debt and dollars, simply because they are about as common as dirt.

The reasoning for this is since the market for Treasuries and greenbacks is so large; there is no other parking place for that money, which makes a mass exodus from U.S. debt holdings virtually impossible. Therefore, investors can’t sell and values can never go down in a significant manner. Such sophomoric reasoning is akin to saying IBM stock can never fall precipitously unless most owners decided to sell their shares.

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BAGHDAD, July 22 (UPI) — Iraqi leaders likely will miss this weekend’s deadline to decide whether to ask U.S. military troops to stay beyond December, U.S. and Iraqi officials said.

President Jalal Talabani gave Prime Minister Nouri al-Maliki and others until Saturday to reach agreement on what, if any, U.S. military presence Iraq may need beyond Dec. 31, the date American troops are to withdraw from Iraq.
Read more: http://www.upi.com/Top_News/World-News/2011/07/22/Iraq-likely-to-miss-troop-request-deadline/UPI-95721311348492/#ixzz1SvBGjgGW

cut_cap_balanceThe House of Representatives has approved the GOP’s ‘Cut, Cap and Balance’ plan with a vote of 234 to 190.

The bill imposes caps on federal spending as a percentage of GDP. It also allows for an increase in the debt ceiling by $2.4 trillion in exchange for both the Senate and House approving a balanced budget amendment.

Read more: http://www.foxnews.com/politics/2011/07/19/house-approves-cut-cap-and-balance-plan/#ixzz1Sdsmk8Rs

The Federal Reserve may keep interest rates at record lows for the longest period since World War II as the economic slowdown that sparked a four-month bond rally worsens, according to Treasury market signals.

The 3-percentage-point gap between yields for three-month and 10-year Treasuries indicates the economy may grow 1.1 percent in the 12 months ending June 2012, a study by the Fed Bank of Cleveland says. That’s less than half the central bank’s current forecast, and may delay any rate increase from the zero- to-25 basis point range held since December 2008.

Read More:  http://www.bloomberg.com/news/2011-07-11/fed-on-hold-longest-since-1940s.html

By Garth Theunissen and Allison Bennett – Jul 11, 2011

The best currency forecasters say the dollar’s 13 percent slide over the past year is coming to an end as Europe’s deepening debt crisis discourages bets against the world’s reserve currency.

Led by Schneider Foreign Exchange Ltd., the five most- accurate firms during the six quarters through June 30 as measured by Bloomberg see the dollar trading at $1.42 per euro on average by year-end, compared with $1.43 on July 8. Against the yen, they predict the greenback will rise to 83 from 80.64.

Read More: http://www.bloomberg.com/news/2011-07-11/best-currency-forecasters-say-worst-is-over-for-dollar-after-index-tumbles.html

Analyst: Gold May Rise to $5,000 on Limited Supply

June 15, 2011

Standard Chartered Bank issued a comprehensive study this week entitled In Gold We Trust that examines supply/demand trends for gold. According to the bank, “limited gold production, buying by central banks and increasing demand from India and China – can potentially drive the gold price to $5,000 per ounce.”

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The wealth of rich families in the region and the world adversely affected by weaker U.S. dollar against other currencies

Affect the overall continued weakness of the dollar against other currencies, in assessing the wealth of rich families in the world at large, and the Arab region in particular. And grow the wealth of Arab families are usually with high oil prices and the accumulation of financial surpluses that result from that, and encourages Governments to expansion in spending on vital projects in the sectors of infrastructure, which will reflect positively on economic growth in Arab countries, especially the ones of the Petroleum Exporting .

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