Sometimes, I wish I had more space to explore, as last week’s broad overview of the problems and non-problems facing the U.S. economy and the U.S. dollar left so many holes …
“The Chinese are concerned about this issue [raising debt ceiling] because they hold a lot of U.S. debt,” said Prasad. “The Chinese are astounded that the U.S. government would let the debate get to the stage where there is even a remote possibility of a default.”
As you know, I am astounded as well, and the reason I continue writing about it is I want everyone who will listen to be as concerned as I am. I wish I had listened to those who told me in 2008 about the coming financial crisis. Again, though, I believe they will raise the debt ceiling, which brings me back to Europe, the coin with two sides …
- The European Union is looking to lower interest rates on bailout loans to Greece and Ireland and working on a second rescue for Athens in a chaotic effort to prevent a disorderly debt restructuring.
- Germany exported goods worth a nominal 98.3 billion euros in March while taking in imports worth 79.4 billion euros … “That was the highest monthly figure recorded for both exports and imports since the collection of foreign trade statistics had started in the Federal Republic of Germany in 1950,”
I believe they will work through this, as well, but then we return to one of my long-term concerns (cutting the investment in education) about the U.S. economy and the U.S. dollar …
Even with 1 in 10 manufacturing workers unemployed, U.S. companies can’t find enough people to run the smart machines that now dominate the factory floor. On May 13, thirteen people will be the first graduates in two years from a “boot camp” meant to match that need: a program that trains students in computer numerical control operations.
Good news on the long-term concerns and here is some on the near term …
Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.
Now factor in that the private sector is starting seriously hire, and, well, the summer is looking better and better for the market.
Businesses delivered a jolt of strength to the economy by creating 268,000 jobs in April, the biggest monthly total in more than five years. The gains were solid across an array of industries, including construction. It was the third month in a row of at least 200,000 new jobs. The private sector has added jobs for 14 consecutive months. Even a slight rise in the jobless rate to 9 percent appears to be a quirk. Economists say companies are paying for new hires by spending some of the almost $2 trillion in cash that businesses stockpiled after the recession ended in June, 2009.
Trade in the day – Invest in your life …
