What happens to US Dollar-Euro exchange rate when German consumers go on strike in January 2007?
Peter Oberois
Dec. 28, 2006

German economy is booming. People are buying washing machines, camera, refrigerators, computers, cars – you name it. The buying is furious. The ECB is raising rates to hold stand against the inflation. However behind the scene something sinister is coming. All these crazy buying by the German consumers is because of the coming 3% increased in value added tax in Germany to be in effect in Janauary 2007. International thinks tanks now believe, in January 2007 the German consumers will go on strike. A vaccum in buying will collapse the German consumer side of the economy in the first half of 2007.

The effect can be severe for Dollar-Euro exchange rate. The Dollar can sharply rise against Euro. Gold in terms of dollar can sharply fall. The stock markets will also fall triggered by abrupt Eurozone economic collapse.

What happens to US Dollar-Euro exchange rate when German consumers go on strike in January 2007?
Peter Oberois
The effect can be severe for Dollar-Euro exchange rate. The Dollar can sharply rise against Euro. Gold in terms of dollar can sharply fall. The stock markets will also fall triggered by abrupt Eurozone economic collapse...
READ MORE>>

A classic divergence between Nasdaq and Dow shows underemployed economy ready to shock the stock market in January 2007
Fred Day
Since 2000 collapse of dot com economy, 10 trillion dollar asset has been craeted in real estate though tax cuts and other fical incentives including lowered interest rates. However little of that has trickled into the product6ive side of the economy.
READ MORE>>

Economy accelerated on credit driven boom – existing home sales and consumer confidence manifests acceleration
Marla Guthrie
The Fed is in a tight corner again. Existing home sales and consumer confidence manifests acceleration in economic growth. But there is one little problem, the growth is fueled by credit.
READ MORE>>

Toyota planning to buy Ford Motors?
Marla Guthrie
The troubles of Ford Motors are real. According to media reports, Ford's CEO met with Toyota's chairman last week in Japan, in a sign that Alan Mulally may be looking to the Japanese rival for answers to the U.S. auto maker's problems...
READ MORE>>

Cancellations of purchase contracts in housing not counted by Government show massive slow down in hosing – ‘customers walking away’
Karen Gibson
In reality, th number of homes completed and waiting to be sold rose 51 percent to a record 169,000 in November from the same month last year.
READ MORE>>

Stock markets gaining on increased hope in growth prospects and lower rates in 2007 – one of them is true – which one?
Fred Day
The indications are there that growth will falter but growth in US will far better than the rest of the world. The Euro zone, the Asia can suffer larger economic slow down while US may be headed for a slow growth environment.
READ MORE>>

A jam in credit pipe as dollar interest rate 10-year swaps spread widened out by 2.75 basis points – lack of liquidity in 2007 can push stocks, gold and oil down
Marla Guthrie
The $69 trillion dollar interest rate 10-year swaps market is as deep as six times US GDP. It has become the life line of all fianncial systems including mortgage and bond market.
READ MORE>>

MORE ARTICLES >>