Dollar Rises Before U.S. Inflation Report, Remarks by Greenspan

http://quote.bloomberg.com/apps/news?pid=10000101&sid=atNcHiUuQ.m8&refer=japan

June 15 (Bloomberg) -- The dollar rose on forecasts a government report today will show U.S. consumer prices increased in May and on speculation Federal Reserve Chairman Alan Greenspan will signal he's ready to raise the Fed's target interest rate.

The dollar has gained 2.7 percent against the euro since last Tuesday, when Greenspan said he'll do ``what is required'' if inflation surpasses central bankers' forecasts. The core consumer price index rose 0.2 percent, according to the median estimate of economists polled by Bloomberg News.

Should inflation exceed predictions, ``the initial reaction would be for the dollar to rally,'' said Marvin Barth, a currency strategist at Citigroup Inc. in London and a former Fed economist. ``If today's data do surprise on the upside, there's a good chance he will add to what he said last week,'' Barth said of Greenspan.

Against the euro, the dollar traded at $1.2037 at 11:26 a.m. in London from $1.2059 late yesterday in New York, according to EBS, an electronic foreign-exchange dealing system. The dollar may strengthen to $1.1950, said Barth. Versus the yen, the dollar was at 111.15 from 111.03. The yen earlier rose to 110.65.

I spoke with local stores in the area, and local hotels, and they all told me they are running at 50% capacity, and sales compared to last year.
Bush admin loots the treasury to start a war for his corporate friends, pours monies into a fraudulent war
cuts a tax write off for his 1% of wealthy buddies
cuts social programs across the board
the states go broke
the states cut back everything
all the jobs are outsourced for Bush admin wealthy friends
No one has any money to spend
and Voila!
Inflation, high interest rates, and hell to pay for everyone
Wait til this winter, even here in this small town
No way will people be able to heat their homes and survive
even my adult sons moved home to hunker down and survive, we are all
helping each other out.
Thanks, you moron in the WH...you will go down in flames for what you have done to this country, you lowlife son of a bitch.

Just think how bad it's going to be if the idiot wins or steals in November!

The heads up sent the dollar up, but then it declined to 6-8 month lows. So then the Feds said that they were going to increase rates even sooner. And the dollar goes up again.

I think it's just going to sink again when people, once more, dial in what they think the economy in the US is worth. They're not going to buy dollars to invest in the US unless there's something worth investing in, and the fact is the feds aren't increasing rates because there's anything good going on in the economy. They're going to increase rates to get more money for banks from TINY increases in disposable income from people working very low paying McJobs at the McFactory.

It just seems like they're trying to talk the dollar into a range without actually having to increase rates, perhaps because they're afraid of what a rate increase will do to the real estate industry.

about the FED trying to talk the dollar up without raising rates, unless a token amount for fear of what the effects will be. I think the real threat is deflation here and is why we have been keeping rates at rock bottom for so long. They're between a rock and a hard place.

It seems to me that this recent tremendous growth in M3 is not aimed at fighting inflation, but rather the deflation that we don't see yet, but that the FED does see. As the markets and real estate tumble with personal debt as high as it is, deflation should be the real threat.

Obviously, corporations are making huge profits from low tax burdens, and from super low input costs (labor and and natural resource giveaways). They're not passing on the lower costs to consumers with lower prices. But they surely can. (Corporate profits for the de facto monopolies -- oil, insurance, banks -- are way up even though individuals are suffering.)

There's got to be a lot of room to lower prices, but the corporations don't want to give up their easy, huge profits. What they want is to tap out all disposable income, but not neccessarily drive people to the point where they wont buy unless they get more money.