Comments: Soft landing could make Brown's task harder

There are some additional questions in the quiz:

(4) Between Mar - Aug 2006 the heavily indebted US consumer will stop spending. The ten countries (japan, germany, china etc) who currently finance this indebtedness will see a drastic fall in their exports to the USA and will be under pressure to reduce their purchase of US T-bills. In order to attract the necessary $2bn + per day to finance the debt the Federal Reserve will:
(a) try to attract international investment by raising IR's above 5%
(b) continue to print increasingly greater number of US dollars
(c) both of the above

(5) Raising US IR's will put pressure on both the pound and the euro and as a consequence
(a) both will slide relative to the dollar
(b) the relationship will remain steady as increasing amounts of dollars are effectively devaluing all currencies vis-a-vis precious metals
(c) uk and europe will be forced to raise their IRs to levels which are uncomfortable for growth and employment

(6) By the end of 2006
(a) Ir's will be US 6%, UK 5%, Euro 2.75%
(b) Gold will be trading at $700/oz, oil $50 pb
(c) growth US 2.5%, UK 1.5%, euroland less than 1%

Posted by assetpriceinflation at December 19, 2005 10:17 AM

I like your skip index.

One I use in London is the number of white vans - (convertibles and 4*4s).

Seems to give a good indication of a street/neighbourhood on the up or down.

Posted by MktRshrchr at December 19, 2005 11:47 PM