Dollar extends slide on views of low US rates

Dollar slumps further on expectations Fed will keep rates low

NEW YORK (AP) -- The dollar extended its slide against the world's other major currencies Friday on expectations that the Federal Reserve will keep interest rates low to nourish U.S. economic growth despite rising oil and food prices.

Central banks overseas are increasing interest rates to fend off inflation, making their currencies more attractive to investors seeking higher yields.

Original article:
http://finance.yahoo.com/news/Dollar-extends-slide-on-views-apf-3112272241.html?x=0&sec=topStories&pos=5&asset=&ccode=

The Age Of America Will End In 2016 When China Blows Past Us — IMF

By Stacy Curtin | Daily Ticker

China's economy will be bigger than the U.S. economy by 2016, says the IMF, using a special measure of economic size called "purchasing price parity."
Measured in dollars, the U.S. GDP will still be 70% bigger than China's by then, but the trend is unmistakable: At some point, barring a wreck of China's economic freight train, China will eclipse the U.S. to become the largest economy in the world.

What will this mean?....


Links:
http://finance.yahoo.com/blogs/daily-ticker/age-america-end-2016-china-blows-past-us-154221921.html


Will the 'Age of America' end in 2016?
From Peter Shadbolt for CNN
April 26, 2011 9:00 a.m. EDT

(CNN) -- Is the "Age of America" drawing to a close? According to the International Monetary Fund (IMF), its demise as the leading economic power is five years away and the next president of the United States will preside over an economy that plays second fiddle to China's....

Link:
http://www.cnn.com/2011/BUSINESS/04/26/us.china.economy/index.html

The Long-Term Outlook for the BRICs and N-11 Post Crisis

Goldman Sachs Global Economics, Commodities and Strategy Research

•  The BRIC and N-11 countries are emerging from the crisis better
  than the developed world.
   
• As a result, our long-term projections for the BRICs look more,
  rather than less, likely to be realised.
   
•  It is now possible that China will become as big as the US by 2027,
  and the BRICs as big as the G7 by 2032.
   
•  Within the BRICs and N-11, China, Brazil, India, Indonesia and the
  Philippines appear to be performing best.
   
•  Bangladesh, Egypt, Korea, Nigeria, Turkey and Vietnam form a
  second group of countries that have performed broadly in line with
  expectations.
   
•  Iran, Mexico, Pakistan and Russia have need for improvement.
   
•  We show the ongoing dramatic BRIC influence in key product
  markets, with autos and crude oil as examples.

Original article:
http://www2.goldmansachs.com/ideas/brics/long-term-outlook-doc.pdf

South Africa the Next Emerging Market Powerhouse?

Country seen as gateway for BRIC trade into resource-rich nations of Africa
Apr. 23, 2011, 2:00 pm EDT
By Robert Hsu, Editor, China Strategy

Part of the reason why China is seeing inflation is massive economic growth enjoyed by the nation. The growth in China, as well as the growth of the BRIC economies, was the subject of a recent summit held in Sanya, China’s southernmost city in the Hainan province.

The BRIC nations — Brazil, Russia, India, China — have all become important and powerful economic forces. Together, they’ve soared past the original predictions of Goldman Sachs executive Jim O’Neill, the man who coined the acronym BRIC, regarding what influence these countries were going to have...

Original article:
http://www.investorplace.com/38307/emerging-market-south-africa-included-in-bric-summit/

Tracing the Fed’s Vital Role in the Decline of the US Dollar

By Eric Fry
for The Daily Reckoning
02/02/11

Laguna Beach, California – In 2013, we Americans will commemorate a century of wealth destruction in the United States – the Federal Reserve will be 100 years old.

In 1913, the Federal Reserve Act became law – granting sole authority to the Federal Reserve to “issue legal tender.” Armed with its new power and its good intentions, the Fed embarked on a 98-year process of currency debasement. That’s not what the Fed set out to do; it’s just what it did do.

In the early days of the Federal Reserve, this monetary authority enjoyed the support of a gold standard. Few Americans doubted that the Fed’s new greenbacks would be as good as gold. As such, gold coinage and paper dollars intermingled effortlessly in the US economy for most of the Fed’s first two decades...

Original article:
http://dailyreckoning.com/tracing-the-feds-vital-role-in-the-decline-of-the-us-dollar/#ixzz1KNbCsFsI

24 Signs Of Economic Decline In America

By Michael Snyder
The Economic Collapse
April 22, 2011 1:53 AM

The United States is in the middle of a devastating long-term economic decline and it is getting really hard to deny it. Over the past year I have included literally thousands of depressing statistics in my articles about the U.S. economy. I have done this in order to make an overwhelming case that the U.S. economy is in deep decline and is dying a little bit more every single day. Until we understand exactly how bad our problems are we will never be willing to accept the solutions. The truth is that our leaders have absolutely wrecked the greatest economic machine that the world has ever seen. Most Americans just assume that we will always...

Original article:

http://www.benzinga.com/11/04/1025413/24-signs-of-economic-decline-in-america

US default could be doomsday option for economy

Tom Raum, Associated Press,
On Saturday April 23, 2011, 11:42 am EDT

WASHINGTON (AP) -- The United States has never defaulted on its debt and Democrats and Republicans say they don't want it to happen now. But with partisan acrimony running at fever pitch, and Democrats and Republicans so far apart on how to tame the deficit, the unthinkable is suddenly being pondered...


Original article:
http://finance.yahoo.com/news/US-default-could-be-doomsday-apf-3685021209.html?x=0

Developing nations' rise poses risks for rich ones

By PAUL WISEMAN
The Associated Press
3/30/2011 1:44:37 AM ET

World no longer needs America to bust global recession, but new powers face inflation, drive commodity prices higher....


Original article:
http://www.msnbc.msn.com/id/42329602/ns/business-world_business

5 lies the economists are feeding us

3/9/2011 3:31 PM ET

By Anthony Mirhaydari, MSN Money

Reassurances from the Fed on down about low inflation and falling unemployment are ringing hollow as stagflation looms. They aren’t fooling us, but they might be kidding themselves....

Original article:
http://money.msn.com/exchange-traded-fund/5-lies-the-economists-are-feeding-us-mirhaydari.aspx

US Going Same Route as Greece, Portugal: Economist (CNBC April 7, 2011, 9:23 am EDT)

The US is going down a similar road as that taken by Greece and Portugal with regard to its budget decisions, John E. Silvia, chief economist at Wells Fargo, said on Wednesday.
"To me-being in Europe for a few days-the plot in Greece and Portugal sounds an awful lot like the same plot that's going on in the United States. But the characters have different names," he said.....

Original article:



http://finance.yahoo.com/news/US-Going-Same-Route-as-Greece-cnbc-3198218354.html

Jobs returning — but good ones not so much ( By Zachary Roth Wed Mar 9, 12:10 pm ET )

When it comes to jobs, it's not just quantity that matters--it's also quality. It's great news that the economy is finally producing jobs again--even if it'll take another few years of this kind of growth to get us back to where we were before the Great Recession. But that also means it's now time to ask what kind of jobs are being created. And on that front, things are a lot less encouraging......

Original article:
http://news.yahoo.com/s/yblog_thelookout/20110309/ts_yblog_thelookout/jobs-returning-but-good-ones-not-so-much