Where to Go For Good News About the American Economy

Pravda, where else?

The euro rate dropped to its all-time minimum over the recent two years on the Russian market on Tuesday. *** “[W]orld central banks have recently changed their attitude to the European currency and looked at it in a more critical way,” [Elena Khrupova, an analyst with BrokerCreditService] said. Such a change has been caused with the ongoing political crisis in Germany. *** To crown it all, the chairman of the European Central Bank Jean Claude Trichet stated Monday that the EU’s economic development potential was close to the level of 2 percent, but not 2.5 percent as it was supposed before.
The fast rise of the US dollar occurred not only because of the negative news about the European economy: the dollar went up against the background of positive news about the American economy. The US currency started strengthening in the world after the publication of data about the September index of industrial activity in the USA. “The index was expected to slide after the destructive hurricanes. However, it showed a considerable increase of up to 59.4 points vs. 53.6 points in July. It is noteworthy that the majority of market analysts were expecting a reduction to 52.0 points,” Elena Khrupova said.
High prices on fuel and the devastation caused by Hurricane Katrina have obviously exerted their negative influence on companies’ activities. Specialists believe, though, that it is only a temporal phenomenon. The basic factors, which make the US industry move ahead and develop, are still stable. The unexpectedly registered economic growth also testifies to the fast recreation of the American economy after the two hurricanes, which obviously adds more optimism for the US currency, specialists say.

You can link to Pravda and dozens of other international newspapers, in English, at Power Line News.

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