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Realistbear

B B C: U S Economy A Powerhouse Of Strength

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http://news.bbc.co.uk/2/hi/business/4969898.stm

Last Updated: Wednesday, 3 May 2006, 16:17 GMT 17:17 UK

Economic data hint at US strength

President Bush has trumpeted his administration's economic record
US economic reports have underlined the strength of the world's biggest economy, suggesting that interest rates may well
keep rising
.
The Institute for Supply Management said that its services index rose to a higher-than-expected 63 in April.
A separate Commerce Department report showed that factory orders had their biggest gain for 10 months in March.
Many analysts are now predicting that the US Federal Reserve will keep hiking interest rates to rein in inflation.

Economic Strength + High Interest Rates = Low dollar :blink:

Economic Weakness + Low Interest Rates = High Pound :blink:

What is wrong with this picture given that US and UK are running deficits and personal debt levels are broadly equal on a per capita basis?

Edited by Realistbear

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Economic Strength + High Interest Rates = Low dollar :blink:

Economic Weakness + Low Interest Rates = High Pound :blink:

What is wrong with this picture given that US and UK are running deficits and personal debt levels are broadly equal on a per capita basis?

FX Markets seem totally irrational to me at the moment :ph34r: Cable/Dollar correction must come soon surely :rolleyes:

Edited by LBoots

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Read this from financial sense (click) about the reality behind the apparent "powerhouse".

Yeah but, no but...

Its CABLE that is inexplicable. The UK is in a precarious position with many of the same problems as our former colony with regard to Tat consumption and bubbles. Like Mother like colony etc.

The pound is around 1.84, or about 20 cents above historical norms over the past decade. The value is more realistic when the UK was a net oil exporter and had healthy balances and no debt fuelled HPI and MEW. Now that the Miracle Economy is unwinding the pound should be tracking down against both the US $ and the Euro.

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  • 301 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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