[KevO]

maybe not good news for the US but worse for the UK and Europe as this could start the strongly forecast house price slide/crash
see

http://news.bbc.co.uk/1/hi/business/6562743.stm

[TorrKing]

Just checked on google, one USD is worth less than 6 NOK. I have never seen that happen before!

[dukey]

this has been LONG expected
all the smart money has moved in gold/euros already
It was even in the news that Cheney did this ..

But yeah, i suspect someone has been on a printing frenzy. Stopping publishing the M3 money supply report was a bit of a give away

[scienceteacher]

The money has barely even started to move into Silver or Gold yet - even though they are both up hugely on just two years ago.

When when the money really starts moving into these metals through numerous ETFs and direct buying then Gold will be $2000+ and Silver $40+.

That will be the time to sell !

[mmasters]

$this->bbcode_second_pass_quote('scienceteacher', 'T')he money has barely even started to move into Silver or Gold yet - even though they are both up hugely on just two years ago.

When when the money really starts moving into these metals through numerous ETFs and direct buying then Gold will be $2000+ and Silver $40+.

That will be the time to sell !

[Lore]

Yes, but the US Stock Market is edging to an all time high today.

[Newsseeker]

$this->bbcode_second_pass_quote('Lore', 'Y')es, but the US Stock Market is edging to an all time high today.

[Lore]

The reason for the bump today in the market is that U.S. core inflation dipped in March and groundbreaking for new homes rose slightly. The economy is continuing to demonstrated its ability to keep growing without generating surging prices.

Looking forward, what will scure these numbers is rising food, and energy prices. I still give Joe public 18 months to realize "there is something rotten in Denmark" (since by then we will have no money to pay for the cheese spoiling on the docks of Copenhagen).

[sjn]

$this->bbcode_second_pass_quote('Newsseeker', '')$this->bbcode_second_pass_quote('Lore', 'Y')es, but the US Stock Market is edging to an all time high today.

[emersonbiggins]

$this->bbcode_second_pass_quote('Newsseeker', '')$this->bbcode_second_pass_quote('Lore', 'Y')es, but the US Stock Market is edging to an all time high today.

[Eli]

$this->bbcode_second_pass_quote('Lore', 'T')he reason for the bump today in the market is that U.S. core inflation dipped in March and groundbreaking for new homes rose slightly. The economy is continuing to demonstrated its ability to keep growing without generating surging prices.

Looking forward, what will scure these numbers is rising food, and energy prices. I still give Joe public 18 months to realize "there is something rotten in Denmark" (since by then we will have no money to pay for the cheese spoiling on the docks of Copenhagen).

[topcat]

When talking about the market at all time highs, the point I always to remember is that if you are talking about the DOW, you are talking about 30 or so stocks ONLY. Not sure of how many are represented in most of the other indices of which there are a bunch.

To top it off, every now and then, for what reason I don't know, "they" will remove a stock or two and replace them with other(s). Kinda reminds you of the govt boogering with the CPI.

[Lore]

The problem with the exchanges is that they are suppose to be forward looking, but generally only respond to past data in a big way. I believe most traders are taking a short position.

[KevO]

$this->bbcode_second_pass_quote('', '
')Pound reaches 26-year dollar high
UK pound vs US dollar since 2000
Sterling has continued to climb against the US dollar, moving above $2.01 - the highest rate since June 1981.

The currency broke through the $2 level on Tuesday after unexpectedly high UK inflation figures indicated further UK interest rate rises were likely.

The Bank of England is widely expected to raise rates to 5.5% on 10 May and at least once more later in the year.

The dollar is also at two-year lows against the euro and 17-year lows against the Australian dollar.

One dollar was worth 0.735 euros and 1.195 Australian dollars.

Inflationary threats

The pound was strengthened further by the release of the minutes of the Bank of England's last interest rate meeting at which two of the nine members voted for an immediate rate rise.


Five and ten pound note

Pound/dollar exchange rate

Official figures also showed that average earnings rose 4.6% in the three months to February, which is the fastest rate for almost three years.

The Bank of England is concerned that the current rate of inflation will encourage workers to press for higher wage settlements, which would create more inflation.

The Office for National Statistics points out that the rise in average earnings came entirely from bonuses, but those can still be inflationary.

'Most pronounced'

"Sterling's rise above $2 is a consequence of both sterling strength and dollar weakness," said Howard Archer, an economist at Global Insight.

[TorrKing]

Isn't really dollar vs. whatever currency not really truely descriptive to the situation, since they are all fiat currencies and also do suffer?

So while the dollar moves down more than the other currencies, they are really all dropping in value, but it isn't measurable as there isn't something to compare them with.

Wouldn't dollar vs. gold value be a better figure? At least if the gold market wasn't manipulated...

[Newsseeker]

An all-time low for the dollar would be good for exports except that we have nothing to export.....

[FoxV]

$this->bbcode_second_pass_quote('Lore', 'T')he reason for the bump today in the market is that U.S. core inflation dipped in March and groundbreaking for new homes rose slightly. The economy is continuing to demonstrated its ability to keep growing without generating surging prices.