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Imf Says Dollar Needs To Depreciate ‘significantly’

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The International Monetary Fund on Wednesday stepped up the pressure for far-reaching shifts in exchange rates, declaring that the dollar will have to depreciate “significantly” over the medium term if global economic imbalances are to be resolved in an orderly fashion.

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The International Monetary Fund on Wednesday stepped up the pressure for far-reaching shifts in exchange rates, declaring that the dollar will have to depreciate “significantly” over the medium term if global economic imbalances are to be resolved in an orderly fashion.

Depreciate relative to which other currencies? Yuan?

Billy Shears

Edited by BillyShears

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The IMF person seems to have overlooked the strength of the US economy with GDP growth expected to top 5% this year, thats just behind Japan at 5.4 and China at a mega 10.2%. The UK will be fortunate to break 1% by the end of the 4th Q IMV.

http://today.reuters.com/business/newsArti...AL-EARNS-DC.XML

Manufacturing should remain strong

Wed Apr 19, 2006 12:05 PM ET

By Ben Klayman

CHICAGO (Reuters) - U.S. manufacturing may not have the sex appeal of the latest iPod digital music player, but demand is strong and industry executives see that trend holding in the second quarter.
Manufacturing plants are running
at levels unseen in five years and companies
-- including United Technologies Corp. (UTX.N: Quote, Profile, Research), Eaton Corp. (ETN.N: Quote, Profile, Research) and Parker Hannifin Corp. (PH.N: Quote, Profile, Research) -- are issuing sunnier profit forecasts on higher demand.
Eaton previously believed first-quarter U.S. Gross Domestic Product, the measure of total goods and services produced within U.S. borders, would increase 4.5 percent, but now believes it will top 5 percent.

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The IMF person seems to have overlooked the strength of the US economy with GDP growth expected to top 5% this year

However, that's with the government borrowing around 6% of GDP to throw into the economy, and inflation probably 6-8% (so real growth is close to zero, if not negative).

Manufacturing plants are running at levels unseen in five years

Possibly because there's a lot less of them than five years ago?

Edited by MarkG

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If depreciate means the dollar will get weaker (i.e around $2.00 to the GBP instead of $1.75 as of recent) then I guess I'm best to sell my Caterpillar shares now rather than later? Then when I've sold them, wait for the dollar/GBP to hit 2.00 or so and buy some more ?

Is that a plan ?

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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