The IMF sees support for the dollar from the American Jobs Creation Act.

The measure, passed in 2004 (but only fully clarified in January 2005), allows US companies to repatriate profits previously held abroad at a 5.25 percent tax rate rather than the 35 percent that would otherwise prevail. To meet the provisions of the act, companies must outline how the funds will be used in a plan that requires executive approvals. The tax advantages of repatriation may lead to substantial flows, to be reported as negative direct investment abroad, and may have become significant starting in the second quarter of 2005.

http://prudentinvestor.blogspot.com/2005/0...rkets-this.html

About $100 Billion is involved I believe ?

Seems that the USA along with most Western Governements and their central banks (excluding ECB) are pulling out all all and any stops to prevent even a minor recession.
Of course if they continue to increase money supply at the rate they are doing all asset prices, including property, can only rise. Years ago these actions would have resulted in inflation taking off but cheap asian and eastern block european labour is keeping inflation down - so, presumably they'll keep those printing press's running 24 hours a day.

IMPROVING TRADE BALANCE- It's a temporary sham:

IT'S IN THE DETAIL... !

Look at THIS:

Mon/ Imports Exports =Deficit .China. ..Oil.. OPrice bbls
Apr. $ 163.4 $ 106.4 $ 57.0Bn $ 14.7b $ 19.4b $44.76 433m
May. $ 162.2 $ 106.9 $ 55.3Bn $ 15.8b $ 15.8b $43.08 366m

The DEFICIT improved by $1.7Bn.
Meantime, Oil imports dropped by $3.6 Billion,
which is more than TWICE as much.

$727 Million of this improvement was due to the lower Oil Price.
The rest, $2.9 Billion was due to LOWER oil imports- fewer barrels.

How sustainable is that!
In reality, it is mainly a seasonal things. Oil imports will rise again,
as we head into summer (july & august) and more in the Fall

@: http://www.advfn.com/cmn/fbb/thread.php3?id=8834394