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

To: RockyBalboa who wrote (7797)	5/27/2008 4:11:01 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71456

What am I missing? finance.yahoo.com quotes.ino.com -g- cme.com

To: RockyBalboa who wrote (7797)	5/27/2008 4:40:17 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71456

...Even the ECB's own economists, who have underestimated inflation every year since 2001, are predicting prices will rise at a 2.9 percent rate this year, the biggest increase since 1993. The outlook is forcing the ECB to hold its key interest rate at a six-year high of 4 percent, even as growth slows. ...Faced with opposition in Congress and the need to fight the credit crisis, Bernanke has been forced to scratch an explicit target off his ``to-do'' list, says David M. Jones, a former Fed economist who has written several books on the central bank. `Given Up' ``Bernanke came into office determined to establish an official inflation target at the Fed, but he's completely given up on the idea,'' Jones says. Nobel laureate economist Joseph Stiglitz dismisses targets as ``a fad.'' Central banks that cling to them are courting ``disaster,'' he said in a May 21 interview with Australian Broadcasting Corp. ``Countries that follow inflation-targeting are likely to get themselves into trouble.'' ...The ECB's adherence to a target is already accentuating tensions as individual economies within the euro area diverge. During the first quarter, Portugal's economy contracted, and Spain's growth was the slowest since the third quarter of 1995; Italy's economy grew at a year-over-year rate of just 0.2 percent in the first quarter. Meanwhile, expansion in Germany, Europe's largest economy, is the fastest in 12 years. Inflation in the region ranges from 1.7 percent in the Netherlands to 6.2 percent in Slovenia. `Contentious' Choice ``Germany doesn't want inflation, and the weak countries don't want deflation,'' says Bernard Connolly, chief global strategist at American International Group's Banque AIG unit in London. ``The choice between the two alternatives is likely to prove contentious.'' bloomberg.com