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

To: mishedlo who wrote (9927)	7/28/2004 9:15:11 AM
From: orkrious	Respond to of 116555

I sent the following question to Greg Weldon: Greg, can you explain why capital flows into Asian economies is causing the US$ to rally? That doesn't make sense to me. his reply: it isn't ... the Asian currencies RALLIED basis this capital flow, for the last 18 months at least ... NOW, if that flow begins to reverse ... it should lead to a USD rally, as is taking place today. Note the upside breakout via BOTH the daily and weekly USD-Singapore. and Taiwan, Japan, China, Hong Kong, Thailand ... etc. Sincerely, GW the internet is so awesome!

To: mishedlo who wrote (9927)	7/28/2004 10:15:14 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 116555

RE:"White House set to project record deficit $420 billion estimate sure to become an election issue" It's about time Bush starts to cut it...or make moves to cut it. Momentum should carry him through the election from here. He should also reverse on the stem cell thing. Jim

To: mishedlo who wrote (9927)	7/28/2004 11:04:23 AM
From: Gemlaoshi	Respond to of 116555

Mish, Perhaps a bit of smoke and mirrors at play here with the administration's deficit projections. From the CBO report: cbo.gov "By contrast, the President's budget includes no funding for reconstruction and military operations in those countries beyond 2004. If those supplemental appropriations were excluded from the baseline projection, defense discretionary outlays over the next 10 years under the President's proposals would exceed that projection by $451 billion, or about 10 percent, CBO estimates;" My understanding is that the administration has already prepared a "supplemental appropriations" bill of $80 - $100 billion to fund the war in the ME. After Congress passes the FY05 budget, the administration will then present the "supplemental" bill for passage. The result? It minimizes the true picture of the deficit during the election season. By the time Congress acts on the FY05 budget and the supplemental bill, the election will be over. Using the current projection of $420B-$450B, the inclusion of funding the war pushes the administration's own estimates more into the area of $500-$520B. Dave