{"id":188401,"date":"2010-10-05T06:49:00","date_gmt":"2010-10-05T11:49:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/10\/05\/economics-update-26\/"},"modified":"2010-10-05T06:49:00","modified_gmt":"2010-10-05T11:49:00","slug":"economics-update-26","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/10\/05\/economics-update-26\/","title":{"rendered":"Economics Update"},"content":{"rendered":"<p>There is a lot of news today, mostly in currency and international finance, but the lede, at least for a US focused post, which this is, is the Institute for Supply Management&#8217;s <a href=\"http:\/\/www.bloomberg.com\/news\/2010-10-05\/service-companies-in-u-s-expand-at-faster-pace-than-projected-ism-says.html\">non-manufacturing index<\/a>, well above forecast.<\/p>\n<p>In international finance news, we are seeing central banks all over the world beginning to open the spigots again as they see the recovery sputtering.<\/p>\n<p>We have the <a href=\"http:\/\/www.cnbc.com\/\/id\/39510382\">Bank of Japan engaging in another round of quantitative easing<\/a> (printing money) by setting up a \u00a55 trillion ($60 billion) fund to buy government and private bonds in order to keep interest rates at 0%, and Australia, one of the first countries whose central banks increased rates, has <a href=\"http:\/\/www.cnbc.com\/\/id\/39510618\">kept rates at 4.5%<\/a>, surprising the experts who were expecting another rate hike.<\/p>\n<p>Interestingly enough, currency has gone in the <span style=\"font-weight: bold;\">opposite<\/span> direction expects from these actions, with the <a href=\"http:\/\/www.bloomberg.com\/news\/2010-10-05\/australian-dollar-is-near-two-year-high-as-equities-commodities-advance.html\">Australian Dollar approaching a 2-year high<\/a>, and the <a href=\"http:\/\/www.bloomberg.com\/news\/2010-10-05\/dollar-is-near-three-week-low-versus-yen-on-speculation-fed-to-ease-more.html\">US dollar fell<\/a>.<\/p>\n<p>Generally, interest rate surprises on the low side for other countries would drive the dollar <span style=\"font-weight: bold;\">up<\/span>, but it appears that there is an expectation that the Fed will go heavily back into QE like the BoJ.<\/p>\n<p>There is another potential blip on the horizon, as <a href=\"http:\/\/www.bloomberg.com\/news\/2010-10-05\/oil-falls-from-five-month-high-after-industry-report-shows-stockpiles-gain.html\">crude oil appears to be on an upswing again<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a lot of news today, mostly in currency and international finance, but the lede, at least for a US focused post, which this is, is the Institute for Supply Management&#8217;s non-manufacturing index, well above forecast. In international finance news, we are seeing central banks all over the world beginning to open the spigots &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1080,973,1135,1004,1089,985],"tags":[],"class_list":["post-188401","post","type-post","status-publish","format-standard","hentry","category-currency","category-economy","category-energy","category-finance","category-recession","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188401"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=188401"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188401\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=188401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=188401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=188401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}