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SMIPP

Post-Consumer Society? Monetary Discipline Needed.

The Commonwealthmen

This morning, Bloomberg News reported the strengthening of the U.S. dollar. Citigroup sees this as the foreign-currency exchanges anticipating the end of the Federal Reserve’s monetary stimulus. Bloomberg News’ slant was this: Since the U.S. economy is strengthening, the Federal Reserve will pull back on its quantitative easing efforts.

I’m taking a contrarian view: The gain in the dollar isn’t based on some new-found confidence in the U.S. economy, but rather currency investors are simply seeking a safe haven in the coming deluge of economic weakness, taking advantage of the U.S. dollar’s global reserve currency status. Consider the recent headlines:

  • New York region’s manufacturing shrank for the fourth month
  • Jobless claims jumped in November of 2012
  • Euro area slumps into a recession for second time in four years
  • Consumer prices rose at a slower pace in October of 2012
  • U.S. industrial production drops 0.4%
  • Economist anticipate the United kingdom’s GDP…

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About SMIPP Ltd.

SMIPP Ltd is a DG Independent Power Plant Private Joint Stock Company. 25-60 MW Gas Turbines Power Generators

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