> make no mistake, come Hell or High Water, by the end of this year the economy will have improved
timesonline.co.uk
>>>The estimates of private economists, based on recent consumption and output figures, suggest that the US economy may have grown by up to 7 per cent in the third quarter. Although Mr Snow did not endorse these estimates, he said that growth in the year ahead would be about 4 per cent and would “produce loads of jobs”. Referring to the rule of thumb that the US must generate 200,000 jobs a month to cut unemployment, he noted that 4 per cent growth would “translate into roughly two million new jobs from the third quarter of this year to the third quarter of 2004 – that’s an average of about 200,000 a month”.
He added, “I would stake my reputation on employment growth happening before Christmas. I’d bet dollars to doughnuts that we’re going to see a pickup in jobs in the next few months.”
Asked about the impact of such rapid growth on interest rates, Mr Snow said: “Interest rates are the price of capital. As profits increase, there is going to be a need for a capital-rationing process.
“I’d be frustrated and concerned if there were not some upward movement (in rates).”
The US had never intended to talk the dollar down against other currencies, whose exchange rates were set by the market, he said.<<<
Economy up, interest rates up, dollar up --- doesn't look good for gold. |
