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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (6299)	5/13/2004 11:53:55 AM
From: mishedlo	Respond to of 116555

Bank of Japan warns against using forex to fix global economic imbalances Thursday, May 13, 2004 9:39:05 AM TOKYO (AFX-ASIA) - Bank of Japan governor Toshihiko Fukui has warned against using only currency rates to correct global economic imbalances, arguing the solution is for Asia and Europe to gain strength to match the US "An underlying big problem in foreign exchange rates is global imbalances," Bank of Japan governor Toshihiko Fukui said in a speech Fukui said the dollar would be chronically weak if the lopsided balances in trade, investment, income and other economic factors were left unaddressed He was referring to the large-scale US current account deficit, which at times triggers dollar selling on fears the rest of the world would not be able to finance such an imbalance Overnight, the US Commerce Department said the nation's trade deficit widened to a record 46 bln usd in March as a growing economy sucked up foreign-made goods. Skyrocketing crude oil prices also pushed up the deficit for the net oil importer "It is wrong to believe we will be able to solve the problem at once solely through (adjustments to) currency rates," Fukui said, adding the approach would be sometimes effective but has "limitations." "A true solution should come from expansion of Europe and Asia into the economic zones" whose purchasing power is strong enough to consume products in their own regions, he said Fukui also said that "the European economies are not so vigorous at the moment but they will make a step forward with greater dreams" after the European Union enlargement on May 1 to embrace 10 mainly former communist nations "Japan should take the initiative in promoting the formation of a community of Asian economies whose mutual economic ties will be even stronger than the fledgling ties enjoyed at present," he said "This would help rectify global economic imbalances," he said Fukui also said it is "too soon" for the central bank to consider ending its ultra-loose stimulative monetary policy as Japanese companies still need to reinforce reforms to make the current budding economic recovery more solid fxstreet.com

To: orkrious who wrote (6299)	5/13/2004 11:57:15 AM
From: mishedlo	Read Replies (3) \| Respond to of 116555

U.S. mortgage rates spike; 30-year at 8-month high By Steve Kerch CHICAGO (CBS.MW) -- U.S. mortgage rates followed bond yields significantly higher in the week ending Thursday, Freddie Mac said, pushing the rate on the benchmark 30-year loan to its highest level in 8 months. The 30-year loan hit 6.34 percent, up from 6.12 percent a week earlier. That is the highest the national average rate has been since it was at 6.44 percent on Sept. 4, 2003. It also marked the eighth consecutive week the rate has risen. The national average on the 15-year loan, a popular refinancing choice, also shot up, to 5.72 percent from 5.47 percent. One-year, Treasury-indexed, adjustable-rate loans, after showing only modest increases for seven weeks, took a turn higher to 3.90 percent from 3.76 percent a week ago, Freddie Mac said.

To: orkrious who wrote (6299)	5/13/2004 12:02:52 PM
From: mishedlo	Respond to of 116555

’05 request for Iraq will top $50 billion WASHINGTON - The Bush administration’s next request for financing wars in Iraq and Afghanistan will push next year’s total beyond $50 billion, a top Pentagon official told Congress on Thursday. The remark by Deputy Defense Secretary Paul Wolfowitz put a partial price tag on operations in both countries for the budget year that begins next Oct. 1. The administration has long insisted it will not be able to accurately estimate those costs for many months because of uncertainties over conditions in Iraq and possible contributions by allies. President Bush had formally sought an initial $25 billion for next year’s military activities in Iraq and Afghanistan on Wednesday. Administration officials notified congressional leaders about the request a week earlier, abruptly reversing earlier declarations that they would not seek the money until after the November elections. On Thursday, Wolfowitz told the Senate Armed Services Committee that the administration’s second request for funds will come early next year. “It will surely be much larger than $25 billion,” he said. That would bring the total requested so far for next year to over $50 billion. Many lawmakers of both parties have said they believe even that figure will ultimately prove short by many billions of dollars. Bush’s initial request for $25 billion would give him nearly unfettered control over details of how the money would be spent, which drew fire from senators. Approval considered certain Though Congress is considered certain to provide the money he wants, it is uncertain whether it will grant him such leeway in dispensing it. Democrats and some Republicans, rankled by reports that the administration used earlier funds for Iraq war preparations without telling them, are leery of providing him with unlimited flexibility in spending the money. “This is not responsible because it’s just a blank check for $25 billion,” said Sen. Carl Levin of Michigan, top Democrat on the committee. “So in terms of balance with Congress, there’s no balance here.” Sen. John McCain, R-Ariz., said he was troubled by a request “that basically outlines some priorities and that states it can be used for any fund.” Wolfowitz defended the administration’s request for flexibility. “We’re not looking for a blank check,” he said. “We are looking for the kind of flexibility that will make sure that when a need arises, we can allocate funds to where that need exists.” =========================================================== Dumbass comment of the day In other words they are looking for a blank check. Mish

To: orkrious who wrote (6299)	5/13/2004 1:43:37 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Portuguese central bank sells 35 tonnes of gold Thursday, May 13, 2004 6:06:04 PM LISBON (AFX) - The Bank of Portugal said it has sold 35 tonnes of gold from its reserves over the last few months It said the sales were aimed at diversifying the country's external reserves, with the proceeds held in a special account at the bank The bank sold 45 tonnes of gold in March and April 2003, 30 tonnes in February that year and 15 tonnes at the end of 2002 In December 2002 Portugal held 600 tonnes of gold, representing 47 pct of central bank reserves The sales have been carried out under terms of an accord signed in September 1999 by the European Central Bank and 14 other national banks. It expires later this year The agreement stipulates that annual gold sales cannot exceed 400 tonnes and limits the total amount sold to 2,000 tonnes fxstreet.com

To: orkrious who wrote (6299)	5/13/2004 1:47:53 PM
From: mishedlo	Respond to of 116555

Eichel does not rule out German budget deficit above 3 pct/GDP next yr Thursday, May 13, 2004 6:05:47 PM BERLIN (AFX) - Finance Minister Hans Eichel said he would not rule out the possibility that Germany's budget deficit next year will breach the 3 pct of GDP limit He also said the goal of achieving a balanced budget by 2006 was made in 2000 when the government had assumed Germany's GDP would post a medium term annual growth of 2.5 pct after tax reforms But in the meantime, he added, Germany's economy has not achieved targeted growth levels, which has meant more difficulties for the budget "Whether this means then that the path has been extended or not is...naturally a political decision. I do not want to preempt this...but I want to stick to it," he said, referring to the goal of a balanced budget by 2006

To: orkrious who wrote (6299)	5/13/2004 1:52:52 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Silver Standard Resources Inc. (NASDAQ:SSRI - News; TSX VENTURE:SSO - News; BERLIN:858840 - News) is pleased to report a 40% increase in measured and indicated silver resources to 403.6 million ounces and a 25% increase in inferred silver resources to 446.2 million ounces from May 2003. ... With cash of $61 million, and marketable securities of approximately $10 million at March 31, the company decided to invest approximately 20% of its cash and securities in physical silver following the decline in silver prices in April and May. Silver Standard now owns over 1.95 million ounces of silver. This silver is held on an allocated and segregated basis and, consequently, is not available to be loaned. Ted Buttler finds a follower?