U.S. Economy Has Gradually Step on the Recovery Track
Conspiracy theory popular in the United States, China, China at the time when the Fed chairman is also the silence to speak, listen. In fact, this has shifted the attention of China, can not truly know ourselves.
Bernanke said that deflation, deflation to spread into China, the United States point of view. If the current Fed chairman as a credible public statements, that “Greenspan marry 15 times, the bride did understand his marriage proposal,” This joke has also become true. Only after leaving office, it was found that Greenspan’s words are not vague personality traits, but job needs.
Where is deflation? You can not find. The U.S. objective of monetary policy over the past two years, has reached one by one gradually. Step on the U.S. economy has been slowly recovering on the right track, leaving only one place to the world of hairs.
If we must find the object of a listen, then the Chinese investors can now listen to cell older.
The helm of U.S. monetary policy once been transformed into a person in charge of their own consulting firm, to determine the precise, clear description to win customers, both business needs, but also 20 years old cells accumulate under the overall charge of the economy’s strength and reputation .
December 18, the former Federal Reserve Chairman Alan Greenspan said the U.S. economy is no doubt that growth has emerged. Very good economic performance in the fourth quarter is likely to exceed 3.5% or higher.
This is Bernanke openly pessimistic stark contrast, however, Greenspan predicted the light, just behind the scene is a credit to Bernanke.
The U.S. bond sector PIMCO CEO Warren Buffett said the Mohamed El-Erian earlier made a similar growth rate is also expected Greenspan to this evaluation is “very reasonable.”
As of the third quarter, the average annual growth rate of the U.S. economy about 2.5%. Retail sales continue to rise and the unemployment rate continued to improve, that the economy is on firm footing.
U.S. Labor Department data show that U.S. workers apply for unemployment benefits the first time also appeared for the first time unexpectedly fell last week, showed the U.S. job market is repair, and receives applications for unemployment insurance fell by more than 3000 to 42 million, is the lowest in three weeks value. The economist is expected to be 425,000.
Greenspan predicted: “The unemployment rate should decline from next year, most likely before the end of next year fell to 9%, or 8% to 9% range of the high end.” Data show that employers in the United States 11 new recruits in January by 3.9 million employees, the unemployment rate is currently around 9.8%.
With Christmas approaching, the U.S. consumer confidence rose in December to 6-month high. Reuters / University of Michigan consumer confidence index has increased from 11 to 71.6 at the end of 74.2, Bloomberg data collected economists predicted value is 72.5.
The customs data showed the U.S. trade deficit has been shrinking in October to 387 billion dollars, Bloomberg 78 collected the most optimistic economists expected but also “optimistic.”
As a consulting company Greenspan Associates people while Greenspan predicted, with the growth performance of the company, the stock price will rise further.
He said that we see the company’s profitability has peaked, but fortunately, the company’s revenue began to grow, which will boost profits, the time when revenue growth, stock prices should have higher growth.
Up to now, the S & P 500 index has risen 12% during the year, because the United States generally beyond the company’s earnings expectations. This is largely due to the Fed continuing to purchase government bonds, lowering interest rates to promote economic growth. A Bloomberg survey showed economists expect the S & P 500 next year will be 1242 points this year, up to 1379 points.
China also needs more data to question Bernanke’s disingenuous it? Frown the current Federal Reserve Chairman and former Chairman of optimism, do I need more evidence to help you sort out the chaos of the mind?
Crisis, Bernanke succeeded in persuading China and Europe turn the tide, gone against the tide turn on the water, and his so-called quantitative easing, orders outside the capital is the local flood, the flow territory of the United trapped in the high capital adequacy ratio and excess reserve pay interest on the fence.
Present the results of the U.S. economy is not let one accident, although I believe many people by surprise, then prepare for a larger “accident” – the United States unprecedented high interest rates. Interest rates to fight inflation, the name will begin to shift towers on the beach to play or leave it as an asset bubble in the cable. Remember, the assets of the United States has completed the most “solid” in the amendment, in terms of global capital, and perhaps that is the real real Zhuchaoyinfeng.
“There are a number of very positive and very negative force in the running, but the short term, the upward momentum.” Greenspan said.
Probably no more accurate than this overview. U.S. real estate still suspense, the global economy crisis after another, but if all the policy points are correct, a correct result, even if it is relative term, it will reach it?
United States, the country’s strategic and systemic competitiveness is awesome. The elite running the country the best system to ensure superior technical bureaucracy; separation of powers, but also ensure the government can not affect the profile for long-term pursuit of short-term performance of monetary policy options. China, how to identify from the pile of paper so the conspiracy theory into the foreseeable know ourselves? In a sense, hindsight is also very good, as long as the lessons of history can be bought in the wisdom; Although hindsight it is hard not to pay the high opportunity cost of wrong decisions, whether policy makers or investors.
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