The U.S. Dollar Slumps More
Jack Crooks takes a closer look at the U.S. dollar and the U.S. debt ratio. In this issue of Money and Markets, Mr. Crooks examines what the Federal Reserve is not doing to help out the U.S. economy.
Jupiter, Fla. (PRWEB) March 9, 2008 -- Jack Crooks takes a closer look at the U.S. dollar and the U.S. debt ratio. Mr. Crooks examines what the Federal Reserve is not doing to help out the U.S. economy.
Consumption makes up nearly three-quarters of U.S. gross domestic product (GDP). When consumers are buying, the U.S. stands head and shoulders above all other major economies. But recently that dynamic is shifting. Debt as a percentage of GDP has spiked to around 130%.
Plus, tightening credit and surging inflation are barreling down on consumers. Week after week, there is new word of financial institutions increasing their loss estimates to cover their exposure to bad debt and mortgage companies owning up to hundreds of millions of dollars in subprime-related losses. This has resulted in fewer and fewer institutions wanting to lend money while they try to shore up their balance sheets. That doesn't bode well for consumers who need loans to spend.
A healthy labor market is necessary for a successful economy. That's because steady job growth bolsters consumers' spending power and positively impacts an economy's bottom line. Without workhorses driving production, earning money and pumping it back into goods and services, the economy risks spiraling out of control. It becomes a vicious cycle. The latest numbers look bad:
| | - Average weekly jobless claims figures are running 20,000 units higher than 2007's average.
- The U.S. economy lost 17,000 jobs in January 2008.
- And on March 6, we learned that February was an even bigger let-down with the economy shedding 63,000 jobs.
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It only gets worse when looking at workers' wages. Factoring in rising consumer prices, real average weekly earnings fell 0.5% in January and changed very little in February.
"The Federal Reserve is supposed to be responding to incoming growth and price data so they can do their best to keep all of this under control. Monetary policy must be strong, but this Federal Reserve is anything but strong. As the data comes flying at them, they remain inflexible and flat-footed. Ben Bernanke is lowering rates even though banks have no desire to lend it back out to consumers. He's also ignoring inflation concerns along the way. And he's showing a complete disregard for the health of the country's currency," Mr. Crooks states.
To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1516
About JACK CROOKS & MONEY AND MARKETS
John (Jack) Crooks is the founder and president of Black Swan Capital, an independent advisory firm specializing in foreign exchange and currency markets investing for retail and institutional clients. A seasoned financial advisory with nearly 20 years of investment experience, Mr. Crooks uses both quantitative and qualitative approaches to determine the fundamental driving force(s) behind the movement of the currency, capital, and commodities markets. He is the editor of Weiss Research's latest investment offerings, World Currency Alert and World Currency Options, which were launched in August 2007.
Mr. Crooks also founded Ross International Asset Management, a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. Previously, he was general manager of Plexus Trading, where he specialized in currency futures and commodities trading. During his successful career, Mr. Crooks served as chief currency and futures strategist of M2 Futures Inc., an investment boutique headquartered in Chicago, as well as vice president of Global Strategic Research for an international investment boutique, where he was responsible for providing daily advice and global strategy analysis.
Prior to entering the investment arena, Mr. Crooks held various corporate finance positions. He has written extensively on the subject of global currencies and international economics and has been published in Asian Times, Futures Magazine, Barron's, Bloomberg, Dow Jones Newswire, and across many financial websites. He has also appeared on Bloomberg TV and CNBC.
Mr. Crooks holds a bachelor's degree in finance from Florida State University and a master's in business administration from the University of North Texas.
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.
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