Saturday, July 23, 2011

What will be with economy of the USA?



Recently so from all screens and from all динамиков our people to see, have badgered and застращали any horrors about economic accident threatening to the West that me about different things with applications of terrible expressions of type "default", «a credit rating» and other horror even more often began to ask.

At one my correspondent, very touching, actually the person sincerely grieving about destinies of a civilization, the candidate of philosophical sciences, directly cry from the heart has escaped: «Write, please, about a default to the USA. Really the American economy in such bum»? I at first have melancholically waved away: «I will Write hardly, but you for them don't worry. At all of them will be in a full order». However the philosopher wasn't appeased: «I for them don't worry, but to me really it is not clear, why at the USA such enormous external debt. Also afflicts gloating around — Americans-parasites have finished badly at last».
Me, truth, gloating doesn't afflict, I, first, have got used for a long time to it and even, probably, would miss, if it wasn't, and, secondly, itself so these Americans I hate that I can not directly eat. But, I feel, it is necessary to tell all the same some words about this history to calm especially sensitive domestic philosophers.

I can begin, of course, here the erudition to show and any clever words to use, but to sense from it won't be equal what. As soon as we will reach any "swaps", people though something understanding will start to yawn with boredom, and the others завязнут in a never-ending train of in passing arising questions. So give really in a few words and absolutely in a simple way.

That impudent грабилово which at us has been arranged in 98th, to the present civilized default has the same small relation, as the doctor-stomatologist to the doctor of philosophy. Therefore it is not necessary to itself to represent that now Americans as we then, will be built in long turns in exchangers on purpose to get rid of promptly falling dollar and dream to buy if not euro and yuans so though there are some roubles, and their banks will disappear together with money of clients. However, that ostensibly threatens the USA, too concerns this default not much большее, purely formal therefore to a terrible word and definition "technical" is added usually that does all term entirely for the ordinary inhabitant practically not significant.
But nevertheless it is necessary to mention three main horror films. Deficiency of trading balance, a budgeted deficit and a public debt. That is, all is formal it exists actually. The USA buy more than sell, thus the State expenditure more than tax revenues, and the country borrows money. But in a reality all is full nonsense and on the named concepts it is not necessary to transfer our household representations about the person who at the salary in fifteen thousand goes by "Mercedes" and was up to the ears in debt to all relatives and acquaintances.

In present liquid transnational economy that in general who makes and as this trading balance is calculated, a piece even not virtual, and almost already astral and mystical. At me the friend supervises in New York over the several newspapers which owner, the citizen of Israel, lives in Germany, impose editions in Belarus, group of computer support at us in Dolgoprudnom, and money overworks on advertizing from every corner of the globe. And it so, the smallest and primitive example, the present business is even more poured on a planet and from what country at it actually feet grow, it is simply impossible to establish more often.
But has put at all in it. And that for a long time already not so simply to define, and even simply to understand and that, actually, is on sale and bought. It was simple earlier. The country doesn't make enough foodstuff that to support, means, should sell something, for example oil that on this money to buy, say, grain. Oil has fallen in price, money for grain didn't begin to suffice, there was a sensation of easy hunger. That it hasn't amplified, have started to borrow. And on sale to make anything except oil haven't learned, and it has still fallen in price, and to repay debts there is nothing. Here and all great economic knowledge.

And now with many so-called civilized countries which we so like to name "so-called" because, naturally, actually it only we civilized, and so, with these wild countries at all is very difficult for understanding that they actually make and that sell. As even the American jeans in America any more don't sew. That is, not absolutely all is awful, somehow they still to support themselves and back can cover, but from real things, as a matter of fact, except, strangely enough, already mentioned wheat in anything plainly don't trade. But somehow so it turns out that all goods are done by Chineses, and economy the largest all the same at the USA. Certainly, Shevchenkos with Leontevym will quickly explain to you that it is continuous additions and a cheating, but, thank God, the mentioned misters aren't the basic buyers and consumers made in America. And even the highest high technologies, and even most прорывные inventions and discoveries though occur till now from the same USA, but even not they are the main article of export.
And here that actually is the main article, I to you now won't tell. Therefore, as differently we absolutely will leave aside. Some, in my opinion, wrongly, name it "senses". I can while extremely conditionally to designate only it a certain product of the third order and on that already precisely to stop not to be fond. But it is all the lyrics, and it is enough to us to understand the only thing. That now makes and is sold by China, the mankind can quite manage. To China will be without it very much, probably even it is already deadly, heavy, and the others покряхтят, of course, поноют, but will quite survive. And here that make and sell the USA, the modern civilization for today, and in the foreseeable future, well in any way can't manage.

To that all other is technical details, as that «a technical default», of which each other republicans with democrats simply frighten to solve own small interparty problems. But frighten very much not sincerely as perfectly understand, as to the opponent too it is not terrible, as all is standard ritual and anything else.
So on second of August they will agree, will formally lift a debt lath and another will occur nothing. Or will occur. For some days will detain pensions the state employee and payment of percent on state papers. Will represent all it as terrible accident then besides will agree. To noise, of course, it is a lot of, but it not long-range artillery on approaches to Berlin in 45th, it at the next night club petards and шутихами play about.

The attentive reader, probably, has noticed that I at all haven't mentioned such trifle that those dollars in which are nominated, in my opinion, more than conditional debts of the USA also are printed by the USA and not so cost much in manufacture.

By the way, the same Chineses, main possible бенефициары a world economic and financial reorganization, perfectly it is all understand, and though secretly lick for certain lips, but especially don't twitch. I specially didn't want to give here any citations and to refer to authorities, Whether but nevertheless I will dare to result pair of lines from the statement of the director of Institute of Asian-Pacific researches at the Chinese academy of social studies of Sjanjana, ardent, by the way the fighter with the American dollar as base of a currency exchange: «Chances that the United States of America will face public debt crisis as it was in Greece, is insignificant are small. First, the statistical data shows that investors are still interested in purchase of new American promissory notes. Secondly,« the technical default »won't force Central Banks of other countries which are the basic holders of promissory notes of the USA, to dump these securities on cheap stuff».

Here, actually, let and through clenched teeth, but all is told. If to add that percent on the mentioned promissory notes so and haven't exceeded till now three percent and at all to speak more nothing it is necessary. Anybody seriously doesn't concern forthcoming American financial and economic accident, and we should calm down. At least, about it.
One my friend of a youth, nowadays for a long time the late, very talented director, shot just the first film, however already very much abused that, usually, however, didn't disturb to creative and industrial processes. But once in the morning on a platform the studio bus has stopped, the door has opened and on steps there was my friend in a condition which has caused fear in the script writer waiting for the director for any joint actions. The girl also has tried to express These fears in the softest form: «Nikita, can, we will cancel shooting, you standing don't stand, лажа will be». Nikita has looked at it a steady gaze and has accurately said: «Lazhi not бу.». Then has dropped out of the bus, having fallen asleep hurriedly. Anything to itself hasn't damaged, a film досняли, and it has received set of prizes on different international film festivals.

Yes, and in the conclusion, two most important moments.

First, and all modern world in general, and at the USA in particular, has huge, some even plainly not clearly as solved problems both in economy, and in the pure finance, in many other areas. But they aren't connected with declared for August, second in America the dramatized apocalypse.

And, secondly, what there publicly and in mass-media spoke and different world financial authorities and officials declared, actually, as practically always happens in similar cases, approximately forty serious economists and financiers adhere to percent similar from my point of view, as much have opinion opposite, and the others fairly admit that representations have no, as the card will lay down. Therefore at my readers just the same and in quantitative and in a qualitative sense a choice. It is possible to believe to me, it is possible to send me, and it is the most reliable — to shrug shoulders puzzly.

But all the same will be how I have told.

Alexander Vasilev

Tuesday, July 19, 2011

Threat of a default of the USA: world economy in disturbing expectation

On July, 19th, Minsk/belta - ITAR-TASS/. Seeming several months ago impossible event - the default of the United States on the debts - is considered now by the world market as one of variants of the further course of affairs in world economy. Threat of loss of the USA to solvency was created as a result of achievement by them in the middle of the past May a marginal level of the state debt confirmed by the Congress, - $14,294 bln.

While the Ministry of Finance manages to be kept in this sum at the expense of clearings of short-term promissory notes. However, as Minister of Finance Timoti Gajtner declared, after August, 2nd of current year all additional possibilities will be settled also the country it will appear in the conditions of a default.
To avoid it, the Congress should make the special decision and increase the limiting size of a state debt. If it doesn't happen that in two weeks the American government can't carry out to the full of all financial obligations any more, including and debt service. At it money for a covering of growing expenses will simply end in necessary quantity.

In the end of the past spring Barack Obama's Presidential Administration and the Congress have started consultations of increase in the size of a state debt of the USA. To spend similar reductions in the conditions of coming nearer presidential election is a variant unacceptable for Barack Obama as they will seriously undermine its chances to remain and after November, 2012 in the Oval office of the White house for the second term.

Barack Obama carelessly named one of these days a possible default "Armageddon". These words of head of the White house have radically changed an estimation the business world of a developing situation. As the London newspaper "Tajms" hasn'ted, for the first time in a post-war history possibility of a default of Washington under the obligations has risen in the agenda of world business.

That fact that now the world markets don't exclude a default of the USA, has caused the past days powerful increase in demand at gold when the price тройской ounces left at the New York gold stock exchange on level of $1607.

As it became known, the administration of the USA in an emergency order prepares a spare variant, the so-called plan In, on an absence case for August, 2nd of the decision of the Congress about increase in a marginal level of a state debt. According to the information available in business circles, its problem - not to admit a default even in absence at the government of enough of money.
It consists in giving to the US president special powers on increase in a debt ceiling at $2,5 bln. till the end of 2012. However in this case Barack Obama will be compelled to incur all responsibility for debts increase as the head of the state. One more of variants - to collect forward taxes from the largest American corporations and banks.

Leading independent experts agree in opinion that absence of the decision on increase in the limiting size of a state debt of the USA by August, 2nd will lead to a storm in the world markets and will cause recession of the American economy. "Events threaten to develop under the crisis scenario", - warns in turn TV channel of the business information "Blumberg".

As experts mark, the present problem of the state debts of the USA became in many respects an event consequence in 2008 of global financial crisis. Arisen in the USA, it has put all world financial and bank system on a crash side. In this sense present threat of a default of the USA is only one of sides of display of this crisis.

Anyway the increase in a limiting limit at the size of a state debt of the USA though won't admit a default, however will lead to the further aggravation of a problem of the state debts of Washington. Thus, ahead of the USA hard times wait very much.

Saturday, July 16, 2011

Crisis yet has not ended

Axel Weber: the economic forecast and the state finance were not stabilised, crisis yet has not ended.

Crisis yet has not ended, but the economic forecast and a condition of the state finance were decently enough stabilised, the representative of Operating council ETSB has declared today the Axel Weber.

"I yet do not speak about the crisis termination even if the economic forecast has improved, and the condition of the financial markets continues to be normalised", he has noted in the performance.

"The patient already left resuscitation, but its immune system is weakened, so relapse is not excluded".

Weber has noticed that the program of purchase of bond ЕЦБ while worked well, however "completely the situation with liquidity in the market was not stabilised yet".

The state measures of provision of economic incentives, and also automatic stabilizers have provided a strong impulse which has helped to normalise cumulative demand in an eurozone, the head of Bundesbank has informed.



"Nevertheless, a problem there is a fast and strong growth of a debt. We assume that the fiscal policy should return on a consolidation way as soon as economy restoration becomes steady".

He has warned the government of Germany that it will be necessary for it to return deficiency in limits of value of 3 % from gross national product which are provided by the Pact about stability and growth. Chancellor Angela Merkel earlier this week has declared that she expects falling of deficiency below 3 % in 2013 or 2014.

The head of the Central Bank has warned that "quickly growing" deficiency of the state finance in the long-term period becomes not only a burden for the capital markets, "but also danger to the monetary policy, сориентированной on stability".

He has noticed that state debt level in an eurozone as a whole will grow more than to 88 % from gross national product to 2011 from 66 % in 2007, according to Eurocommission calculations.

"Considering already high level of a debt, it is possible to assume that political pressure upon an eurozone will decently increase the next years".

Nevertheless, ЕЦБ has already proved that it is attached to the primary goal of preservation of price stability, Weber underlines.

He also has urged Deutsche Banks to finance more business with state support use. He has noticed that restoration секьюритизации in Germany would be as it is impossible by the way.
Portal "Forex of the Analyst”

After the day which has begun in first half of movement in support of dollar, the market Forex has a little quickened.

The euro/dollar pair has shown волатильность about 150 points. The reasons of the given movement have been specified in a yesterday's American premarket.

To it it is possible to add some more factors: proceeding instability of a situation round Greece. As it became known, the data presented by the country did not display a true state of affairs which in Greece the little are worse. As well the index of business expectations of Germany has appeared worse forecasts.

The pound has found the reasons for decrease when it was found out that the American manufacturer of confectionery products Kraft has offered the sufficient sum (3,1 billion pounds) for absorption of British competitor Kedberri.

Dollar/yen has grown since yesterday almost on 100 points that promoted by considerable growth of quotations in the share markets.

Canada, predictably has left the interest rate at former level of 0,25 %. Following the general strengthening of US dollar, pair USDCAD has grown by the given moment more than on 100 points.

Despite universal growth of the American currency, I assume its turn, as a last resort, боковик. On many tools the dollar has rested against the significant levels demanding correction or a turn. On euro/dollar the price can fall approximately to 1,41/1,4150 (38,2 % on Fibonachchi from a growing long-term trend of last year) then I expect its growth to 1,45 and above.

Levels are not punched yet and remain former: resistance on euro 1.4570 and further 1,4825, support 1,4150.

Support for yen: 90.75, 87,75, resistance 93,15.

The Australian dollar: resistance nearby 0.9325., support 0,9150.

Weak data on inflation has put pressure upon Canadian dollar

Data on inflation from Canada has appeared completely not favorable for bulls on loonie and, having added the list of negative factors for the Canadian currency, became the catalyst of jerk dollar/kanady above оферов around C$1.0400 therefore now under fire there were orders on sale in the field of C$1.0420/25. Dealers remind that above C$1.0430 stops are placed, and their execution will allow to count on the further development of ascending correction. Биды now are visible nearby C$1.0395/90, the basic warrants remain in the field of C$1.0370/60.

Friday, July 8, 2011

Putin has told that Russia will continue to be in the lead in world oil extracting

Oil recovery in Russia this year is expected at level of 508-509 million tons, prime minister Vladimir Putin at meeting concerning development of oil and processing branches in the city of Kirishi has informed.

Ministry of economic development and trade predicted earlier oil recovery volume this year at level of 505 million tons. Deputy minister of Energy Sergey Kudryashov declared on July, 1st that oil recovery in the Russian Federation following the results of 2011 will increase by 1 % in comparison with previous year and will make 509-510 million tons.

Putin has reminded that last year of the Russian Federation has come out on top in the world on oil recovery - about 505 million tons, and it is an optimum level, transfers RIA Novosti news agency.

- Third of all Russian export is necessary on oil

"Basically, this year extraction can be hardly more than in the past - somewhere 508-509 million tons", - has told the prime minister.

Also he has told about responsibility of the oil companies on home market maintenance. The volume of obligations of the oil companies on maintenance of home market with oil products should be proportional to volumes of extracted oil, Putin has declared.

"The oil companies should bear responsibility for home market maintenance with qualitative oil products. I ask to perceive it as an unconditional priority", - the prime minister has told.

"I consider that the volume of obligations of the companies on home market maintenance should be proportional to volumes of extracted oil", - he has told. The prime minister has suggested departments to discuss how to reflect this requirement in licenses for working out of deposits, for example, with the sizes of stocks from 5 million tons of oil.

The head of the government also has charged to bring within two weeks in the government projects of the decisions providing gradual rapprochement of duties on oil and dark oil products.

"In prolonged discussion about alignment of duties on crude oil and dark oil products it is necessary to put an end. I suggest to begin gradual rapprochement of level of duties. Within two weeks I ask to provide entering into the government of the project of corresponding decisions", - Putin has told.

Still it is entrusted to government to prepare calculations of material balance of manufacture and consumption on all principal views of fuel and oil products.

"The clear material balance of manufacture and consumption on all principal views of fuel and oil products is necessary to us. I ask Ministry of Economics, Minpromtorg and Ministry for the Power Generating Industry to prepare necessary calculations", - the head of the government has told.

The government supports idea of signing of agreements ФАС, Rostehnadzora and Rosstandarta with the petrocompanies under programs of building and reconstruction of oil refining capacities, prime minister Vladimir Putin has informed.