The Economy

Gold visits old relationship with the US dollarFont
Allen Sykora
May 22, 2009 Article from: Dow Jones Newswires
GOLD and the US dollar have moved back to their traditional inverse relationship lately, although some analysts say it remains to be seen how long this will last and how strong it will be.
Historically, gold tended to rise when the US dollar fell as investors turn to the metal as an alternative currency, and vice-versa. But that relationship went by the wayside for much of the last half year as both often moved inversely to the stock market, analysts said. (read more http://www.theaustralian.news.com.au/business/story/0,28124,25520890-5017999,00.html


Is the US-Dollar headed for a Mighty Crash?
By Gary Dorsch
May 21 2009 4:19PM http://www.sirchartsalot.com/

Each month, the US Treasury publishes its International Capital account, (TIC) which foreign currency traders and bond dealers use to gauge the flows of money from around the world, into and out-of the US-capital markets. The demand for a nation’s bonds and stocks, combined with international trade flows for goods and services, plus behind the scenes intervention by central banks, all act in concert to influence the foreign exchange market which handles $4-trillion per day. . . . .

. . . .The United States is dangerously reliant upon the whims of foreign investors, to help finance its $2-trillion budget deficit this year, and prevent a surge in long-term interest rates, which could have a devastating impact on the US-economy. If bond or currency traders detect that big investors in US-government bonds, - such as China, Japan, OPEC, Russia, and Brazil, have ceased to buy US Treasury debt, or worse yet, are becoming net sellers, it could spark a sharp slide in US-Treasury notes, sending yields sharply higher, and ignite a free-fall in the US-dollar. ( read more http://www.kitco.com/ind/dorsch/may212009.html

GDP plummets record 15.2% in quarter
(Asahi)
Japan's economy shrank by a postwar record 15.2 percent in the January-March period on an annualized basis, government figures showed Wednesday, but some economists say the recession may have bottomed out. (read more http://www.asahi.com/english/Herald-asahi/TKY200905210023.html

May 21 Average summer bonuses to see record 19.39% decline (AP) Summer bonuses at Japan's leading companies will mark a record 19.39 percent dive to 754,009 yen on a weighted average basis amid the global recession, the Japan Business Federation said in a survey report Wednesday. The percentage figure represents the sharpest drop since 1959 when the nation's most influential business lobby it began compiling relevant data, and indicates that faltering private consumption may decelerate further. ( read more http://www.breitbart.com/article.php?id=D989VNI80&show_article=1 )

Japan's crude steel output drops 43.6% in April
Friday 22nd May, 03:22 AM JST
TOKYO —
Crude steel production totaled 5.72 million tons in April, down 43.6% from a year ago and the seventh consecutive monthly fall, the Japan Iron and Steel Federation said Thursday. The dismal figure indicates steelmakers are still curtailing output in the face of weakening demand from automakers, federation officials said.
The drop in April production was the third-largest for any month. By category, steelmakers produced 989,000 tons of specialty steel used in vehicles and other products, down 55.3% from the previous year and the sixth straight monthly contraction, the federation said.