Massive Uncertinty, Devaluation Looming ???

Unemployment in U.S.

Probably Surpassed 9%

in May

By Shobhana Chandra
May 31 (Bloomberg)

Unemployment in the U.S. probably surpassed 9 percent in May for the first time in more than 25 years, underscoring forecasts that the economy will be slow to pull out of the worst recession in half a century, economists said before a report this week.
The jobless rate climbed to 9.2 percent, the highest level since September 1983, according to the median of 59 estimates in a Bloomberg News survey before the June 5 Labor Department report. Other data may show manufacturing and service industries shrank at a slower pace and consumer spending dropped.
“The economy is decaying at a slower rate and that is the best you can say,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “I can’t tell you we are out of the woods yet.”(Learn More At)

Dollar Posts Biggest Drop Versus Euro in 2009 on

U.S. Deficit Share
By Oliver Biggadike
May 30 (Bloomberg) --

The dollar declined beyond $1.41 for the first time in 2009 in the year’s biggest monthly drop after investors dumped dollar-denominated assets as the U.S. budget deficit was projected to quadruple to $1.85 trillion.
The greenback fell against all of its major counterparts in May including the Australian and New Zealand dollars as the yield on the benchmark 10-year Treasury note touched the highest level since November. The pound rose above $1.60 as speculation an economic recovery is starting enhanced the appeal of sterling.
“It’s a fundamental dollar-down trade,” said James McCormick, global head of foreign exchange and local market strategy at Citigroup Inc. in London. “The truth is that countries like the U.S. with handicapped banking systems, with overextended fiscal policy, are going to see very shallow recoveries.”
The dollar weakened 6.3 percent this month to $1.4158 per euro, from $1.3230 on April 30. It was the biggest drop since December’s 9.2 percent decline. The greenback fell 3.3 percent to 95.34 yen from 98.63 at the end of last month. The yen slid 3.3 percent to 134.96 per euro, from 130.52. (learn more at)

U.S., allies prepare for tougher response to

N.Korea

Sun May 31, 2009 6:15am EDT
By Bill Tarrant

SINGAPORE (Reuters) - The United States and its Asian allies could look at tougher responses should diplomacy fail to get North Korea to abandon its nuclear program, officials at a security conference said at the weekend.
U.S. Defense Secretary Robert Gates told his counterparts from South Korea and Japan on Saturday that while diplomacy was preferred, other steps may be considered if it failed.
"Six party talks are the preferred course of diplomacy," Pentagon press secretary Geoff Morrell said, referring to the now defunct talks among the two Koreas, China, Russia, Japan and the United States to disarm the North.
"But given that the six-party talks haven't produced the results we're looking for, Gates also made the point that while we pursue that course, we have to look at other options ... to improve our defenses, if that becomes necessary," he told Reuters.
A Japanese government official, briefing reporters on Saturday after Gates met Japanese Defense Minister Yasukazu Hamada on the sidelines of the Asian Security Conference in Singapore, said missile defense was one of the topics raised. (Learn More at )