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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (3771)	1/31/2008 8:22:18 AM
From: ggersh	Respond to of 71463

Without manufacturing in this country anymore, does that mean the only choice is HYPERINFLATION.....

To: Real Man who wrote (3771)	1/31/2008 10:11:03 AM
From: Giordano Bruno	Respond to of 71463

Euro Zone Inflation Accelerates To A New High In January 1/31/2008 10:07:55 AM Euro zone annual inflation rose to a new high in January, while economic sentiment slid to a two-year low, defying expectation that the central bank may cut rates in near future. A flash estimate from the statistical agency Eurostat, on Thursday, pegged Euro zone annual inflation at 3.2% for January, a new high for the series. In December, annual inflation was 3.1%. Economists expected annual inflation to remain at 3.1%. Eurostat will publish a detailed report on February 29. The January inflation rate is well above the European Central Bank or ECB's target. The bank aims to keep inflation rates “below, but close to, 2% over the medium term”. In January, the ECB left interest rates unchanged amid concerns over rising inflation and slowing growth. The ECB maintained its key interest rate, the minimum bid rate on the main refinancing operations, at a six-year high of 4%. Elsewhere on Thursday, the European Commission said Euro zone economic sentiment dropped 1.7 points to 101.7 in January. However, the indicator continued to remain above its long-term average. Economists were looking for a reading of 104.1 in January. Confidence in services, retail trade, construction and manufacturing sectors weakened in January. Industrial confidence dropped 1 point, while confidence in services slid 2 points. After peaking in May 2007, consumer confidence declined steadily. The indicator dropped 3 points and stayed below its long-term average in January. Meanwhile, the business climate index declined in January. The gauge stood at 0.78, down from 0.89 in December. Economists expected the index to fall to 0.86 in January. Separately, Eurostat reported that Euro Zone's seasonally adjusted unemployment rate remained stable at 7.2% in December. Economists had expected the jobless rate to fall to 7.1%. A year ago, the rate was 7.8%. In the EU27, the jobless rate stood at 6.8% versus 6.9% in November. The rate was 7.6% in the year ago period. The latest data dampened expectations that the ECB will follow the US Federal Reserve in lowering interest rates. In a note, BNP Paribas economist Clemente De Lucia said the ECB is worried that the past and current increases in inflation expectations, along with tightening labor market conditions, might prompt unions to demand substantial wage increases, which may spark a wage-inflation spiral. “Considering that inflation slightly increased in January to 3.2%, well above the ECB's 2% target for medium-term price stability, the ECB should maintain a rather hawkish rhetoric at next Thursday's Governing Council meeting”, the economist stated.