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  • One In 5 Households Now On Food Stamps.

    In This Issue.

    * U.S. GDP disappoints.

    * Currencies & metals rally.

    * Kiwi gains VS dollars U.S & A$.

    * PIMCO likes Norwegian krone fundamentals..

    ...
  • The dollar holds on..

    In This Issue..

    * The Dollar holds on...
    * Pimco is buying Brazilian bonds...
    * Surprising data from the Economist...
    * Chuck's thoughts from Orlando...

    Good day... Chuck spent an extra day in Florida, so he stayed home to recuperate today. I made it home Saturday night, and was a bit shocked by all of the ice and snow which covered my truck at the airport. I heard so much about the winter storm which rocked the east coast that I forgot to check the weather here at home. I am a bit behind this morning, as I stayed up a bit celebrating the Saints victory with friends.

    The dollar bulls were celebrating again on Friday, as the dollar rally continued. The recent strength in the US$ will probably continue this week, as it looks like it will be fairly uneventful as far as data releases. We won't have any reports out in the US today, and tomorrow will only bring the wholesale inventory number. Wednesday we will see December's trade balance along with the monthly budget statement for January. Both of these numbers will likely reflect an ever-growing deficit here in the US, with a 50 billion dollar monthly budget deficit, and a trade deficit just below 35 billion....
  • A Jobs Jamboree for Friday 01/08/2010...

    In This Issue..

    * The dollar holds gains...
    * Japanese saber rattling...
    * Geithner in trouble?
    * Commercial Real Estate in trouble...

    Good day... And a Happy Friday to one and all! The first Friday of 2010! So, let's call it a Fabulous Friday, and save the Fantastico for a day when we'll see the temperature at least reach the freezing mark! Our 'snow day' is over, everyone was safe...

    You see, and I hope you don't mind me taking this trip in the past, many years ago, I spend a winter of discontent, I might add, in Des Moines, Iowa... Where it began snowing in November and didn't stop until the first week of May... When I first moved there, I noticed that their street crews didn't plow the roads, and salt them like they did in St. Louis, they just threw cinders on the snow and people drove on it. That's where I really learned to drive on snow... As the years went by, back in St. Louis, dealing with snow, I realized that the way they did it in Des Moines was better!...
  • Brazil To Benefit From New Carry Trade?

    In This Issue..

    * The dollar fights back...
    * Government deficit spending deep sixes us...
    * Brazilian rate hikes on the table...
    * Round Two of the PPT thoughts...

    Good day... And a Thunderin' Thursday to you! Well... It's not really Thunderin' outside, but it is snowing, with about 3-4 inches on the ground already, and the snow coming down so thick that seeing is difficult. I made it here, but then I drive a car that was made to go in stuff like this! Pretty soon, my phone will begin to ring, with colleagues calling to ask me how the roads were...

    Well... We had more probing higher in the non-dollar currencies only to see the gains wipe away at the end of the day yesterday. Still, as I told a radio audience in Oregon yesterday, traders, investors, etc. still believe the euro is worth more than the dollar by quite a bit... Gold also gave back some gains overnight......
  • Housing stats show more rot on the housing vine....

    * US$ continues to be propped up... * SEK moves up vs. the US$... * Japanese yen falls.... * Gold prices come down ... ** Housing stats show more rot on the housing vine.... It has been a while since Chuck turned over the reigns of the Pfennig to me, so I'm a bit out of practice. But there was a lot of movement in the currency markets over the last 24 hours, giving me plenty of Pfennig fodder. I'll get right to it. The 'Safe Haven' status of the US$ continued to prop it up yesterday as bad housing data in the US scared investors. Sales of previously owned homes fell 5.3% in January, after rising slightly last month. And even worse for US homeowners, the median price of a home fell to $170,300, down nearly 26% from its peak in July 2006. These numbers reflect a worsening housing market which will weigh on the US economy through most of 2009. The inventory of unsold homes did fall, but still stands at 3.6 million. At the current rate of sales, it would take 9.6 months to exhaust the excess supply of homes. And this is assuming no more homes come into the market. The housing downturn will continue well into 2010, and will likely keep the US economy in the doldrums....