Sunday, January 31, 2010

Dorsey Inertia MT4 Indicator



Inertia indicator is based on the concept of physics. Inertia or sluggishness in the body based on resistance to change direction or speed with which a body moves.

Dorsey argues that the trend is a result of inertia of the market. It is necessary to invest much more energy to change the current trend of energy needed to maintain the current trend.
The trend is therefore measures of market inertia.

Dorsey argues that the volatility is the simplest and most accurate measure of inertia. Inertia is based on Relative volatility Index (RVI) indicators smoothed using linear regression.

Positive momentum indicates that the long-term trend is positive and vice versa.

Positive inertia
Inertia> 50
Negative inertia
Inertia <50


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Dorsey Inertia.mq4

mpuls MT4 Indicator


Indicator of A. Elder - pulse system, see lit-ru "Trading with Dr. Elder." No game system, green - buy, red - Cell, but the system of censorship, the author details, see also "Videoseminars with Dr. Elder."

The indicator draws three lines of the histogram:

* Red - ban the game to improve, with the ability to lock in profits.
* Green - game ban for a fall, with the ability to lock in profits.
* Gray - lifting the ban.

Indications of the histograms are based on the values of two indicators - the SS and MACD. SS is a momentum, MACD - because of price movement. If they are directed to one side, the bar of the histogram or green - if they grow, or red - if they fall off, otherwise the bar of the histogram - seryy.V code lines commented out. Using mandatory, together with other indicators.

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impuls.mq4

Friday, January 29, 2010

The euro fell against the Dollar

Euro fell against its U.S. counterpart, the Asian session today, reaching the lowest level since June 14. Now go out data on unemployment in Germany is projected to rise.

Euro / dollar fell below the psychologically important level of 1.4000, bargaining is currently around 1.4005. The breakthrough level of 1.4000 may cause further growth of the dollar in the medium term, however, according to indicators of momentum, the pair traded in the over-sold. Pare supports at 1.3945 and resistance at 1.4225.

Pair Pound / dollar consolidated in the range 1.6250 - 1.6120, and currently is trading around 1.6180. Pare supported at 1.6150, along with the resistance 1.6265, and the four-momentum indicators show downward movement today.

The dollar rose against the Japanese yen, reaching 90.38. Today, the resistance can be found at 90,45 and 88,60 in the support. In accordance with the rates of stochastic, we expect that the couple will show further growth and breach the resistance level will result in a couple of levels 90,80.

Thursday, January 28, 2010

Retail sales according to the Confederation of British manufacturers fell in January predicted

According to the British Confederation of Industrialists (CBI), the balance of total retail sales (Retail sales volume balance) was -8% in January. Recall that in December the figure stood at 13%, and in January, is expected to fall to 11%.

Projected CBI, the situation stabilized in February, with the balance of retail sales improved to -1%. In general, it is expected that recovery will occur uncertain and weak during 2010.

Wholesale sales fell sharply in January (-38%), but is likely to increase in February (the forecast +9%).

British Industrialists Confederation represents the interests of some 240 000 organizations, which employs one third of the workforce of the private sector. The January survey was based on survey of 140 firms.

U.S. consumer confidence rose to 16-month high

Increased in January, optimism about the current economic situation in the United States led to the growth index of consumer confidence to record levels over the past 16 months.

The index of consumer confidence rose in January to a mark of 55.9 compared with 53.6 in December. Rate was at a record high in September 2008, and its growth continues for the third consecutive month.

Nevertheless, the index of consumer confidence in the U.S. is still at a very low level, considerably below the average value of 95.0.

Support the current situation index rose in January to 25.0 compared with 20.2 the previous month. Index of consumer expectations have increased from 75,9 to 76,5.

Monday, January 25, 2010

Wholesale sales in Canada rose by 2.5% in November

Wholesale sales of goods to Canada grew in November at 2.5% to $ 42.4 billion when the market assumed a much lower rate of growth rate in the region of 0,4% -0,5%.

Sales have risen for the fifth time in the past six months. During this period, wholesale trade in Canada has restored approximately 1 / 3 the volume of sales that have been lost since the peak of sales in July 2008.

The main source of growth rate in November began selling in the automotive sector. In addition, strong growth seen in the grocery sector, which includes food, beverages and tobacco products.

Note that the wholesale sales in the automotive sector increased during the reporting period by 7,8% to $ 7.3 billion

Retail sales in Canada fell by 0.3% in November

Retail sales in Canada fell in November to 0.3% to $ 35.2 billion, interrupting the growth, which lasted for the past three months. Data completely coincided with expectations of economists.

The main factor of incidence rate began dwindling sales of winter clothing, which is associated with unusually warm for this season's weather, established throughout Canada.

At the same time sales have declined in five of the eight sectors of retail trade. Falling sales in clothing and accessories at 3,6% was the most significant since September 2002.

Sales in the automotive sector declined in November to 0.2%

Saturday, January 23, 2010

The index of leading indicators in the U.S. increased by 1,1% in December

The index of leading economic indicators in the United States grew in December at 1.1%. The report of the research organization Conference Board noted that the growth of this indicator, which lasts for nine consecutive months, gives reason to expect a rapid pace and improve the economic situation of the coming spring.

The growth index of leading economic indicators in the reporting period exceeded the expectations of economists to forecast increased only by 0,7%.

Eight out of ten economic indicators rose in December. According to Conference Board economist Ken Goldstein, a noticeable growth indicators suggests that the economy is at an early stage of recovery.

UK retail sales index rose by 0,3% in December, below forecasts

The volume of retail sales in Britain rose by 0,3% in December in monthly terms, said National Statistical Office. The value index has fallen short of expectations of analysts, forecast growth index of retail sales by 1,3% during the reporting period. Recall that the previous month fell by 0,3%.

In annual terms, the index of retail sales amounted to 2,1% in December compared with 2,7% a month earlier (revised from 3,1%). Projected annual growth of sales by 3,0%.

New Bank Rules Sink Stocks

Obama introduced a proposal to limit the risks taken by large companies.




Photo: Left to right - the head of the bank Blankfeyn Lloyd (Lloyd Blankfein), James Dimon (James Dimon), John Mack (John Mack) and Brian Munihan (Brian Moynihan) take the oath on Capitol Hill earlier this month before testifying to Congress, the Commission of Inquiry financial crisis, which investigates the reasons for its occurrence.

President Barack Obama has proposed new limits on the size and activities of the largest banks in the country, urging regulators to a more rigorous approach, which has pushed down bank shares and boosted his personal position at the time of the company, showing that he "will not allow lowering the Wall Street.

Having on his side of the former Federal Reserve chairman Paul Volcker (Paul Volcker), Obama stated that he wants to tighten the constraints on financial institutions and compel them to choose between the government security system, and usually quite a lucrative business for sale at its own expense, or possession of hedge funds or private equity funds. Walker was an outspoken supporter of such rules, until recently, Obama's chief economic advisers, including Treasury Secretary Timothy Geithner (Timothy Geithner), and Lawrence Summers (Lawrence Summers), were not so inspired.

"Never again will the American taxpayer will not be held hostage to the bank, which is too big to fail" - Obama said on Thursday, two days after the voters have blocked its ability to follow his plan by sending a Republican to the Senate in order to occupy the vacant seat after the death of Edward Kennedy (Edward M. Kennedy). Election defeat the Democrats the 60 votes are often required to make important decisions through the Senate.

Administration officials said they did not try to revive the Depression era law known as the "law of Glass-Stigalla, which severely shared commercial and investment banks. Their proposals do not compel the existing financial institutions to reduce the size of its activities.

If Obama's bill will be enacted by Congress, it means that his proposals could make significant changes in the activity of the largest banks in the country. The vision of a new, limiting the profitability of regulation, hit the bank shares on Thursday, lowering the Dow Jones at 213.27 points, or 2%, to 10,289.88. Some financial stocks have fallen more than 5%, although it rebounded slightly after Barney Frank (Barney Frank), a Democrat from Massachusetts and chairman of the Committee on Financial Services, said that the new regulations come fully into force after 3 or 5 years, but not right now. Taking aim at J. P. Morgan Chase & Co. was the hardest, falling shares amounted to 6,6%.

The fate of Obama's proposal remains uncertain. The White House has already adopted a provision that gives regulators the right to limit the scope and scale of banking activities. Approval of Congress now depends mainly on the Republicans in the Senate. Several Republicans skeptical look at Obama's proposal, put forward on Thursday. "Let's solve the problem," - said the Republican from Arizona, Sen. Jon Kyl (Jon Kyl). "No need to search for" ghost "in order to transfer it to the attention of the public and to withdraw from the mistakes the administration."

However, the political environment to the major banks are resolutely hostile, the Democrats need only a few Republican votes to approve the version of what Obama called "rule Volcker. Senator John McCain, Republican of Arizona, said that the White House, apparently, is close to a proposal, co-author of which he is to restore the restrictions on banks, which were abolished in the early 90's. "I think that a number of proposals Obama is moving in this direction, but so far I have not had the opportunity to study the details."

Large banks and industry groups say Obama's proposal unnecessary and unwise. "If people focus on the things that have caused or contributed to the financial crisis - that there will be no trading," - said David Viniar (David Viniar), CFO of Goldman Sachs.



In the past few years, banks have been increasing their profits in areas that lie far outside the deposits, lending, trading stocks and bonds on behalf of clients.

Some bought or sponsored hedge funds. Others took up investing their own funds in the markets.

After the collapse of Lehman Brothers and rescue of American International Group in the autumn of 2008, investment banks Goldman Sachs and Morgan Stanley formally became banks, which gave them access to Fed loans and federal guarantees for their loans in the financial markets.

When the crisis ebbed, Goldman and some other banks were able to borrow at low interest rates and move the trading profit on their accounts. This gave Volcker and his allies, who include Vice-President Joe Biden (Joe Biden), a new force for their point of view, namely that the government supported banks should be allowed to take on more trading risk.

"The key issue is that agencies that receive support from the taxpayers, should not be able to profit from its own investments", - said Austin Goolsbee (Austan Goolsbee), economist at the White House, which has staffed the Presidential Advisory Council, headed by Volcker.

The bank had gathered on Thursday to talk about Obama's proposals, mainly on the likely effect on areas where the bank capital is intertwined with the funds of clients. The new rules are likely to force JPMorgan to give up equity in One Equity Partners, which invests the money of the firm. Disentangle direct investment in Goldman will be harder, as more than a cunning scheme lies in the fact that the organization invests its money in the same funds, which invested the money of investors.

Under Obama's proposal, banks that accept deposits are insured or eligible to hold the Fed will be allowed to invest or sponsor of hedge funds or investment funds. "You can do your own trading operations or be the owner of the bank, but you can not do these two things at once," - said an administration official.

The President also called for an extension of the 1994 Act, which prohibits banks buy other banks, if such a deal could bring more than 10% of State-guaranteed deposits. He would like to expand the use of restrictions on other types of financing, such as short-term borrowing of banks in financial markets and may cut the proportion of assets that can retain a firm.

Announcement on Thursday - this is the last step of the way the White House attack on Wall Street and banks. Earlier this month, the president proposed a new commission for the amount of large banks and insurance companies, which could reach $ 90 billion over 10 years, ostensibly to cover the costs of rescue financial companies and motorcar giants.

Caught lasso | How Obama's proposals blow to U.S. banks
If Obama's proposals will go through Congress, the profits of almost all large U.S. banks is likely to be twisted into a knot and reduced. Explanations for these organizations:

Bank of America - on their own trading accounts have less than 1% of total income. Own trading unit, and direct investment funds, BAML Capital Pertners may be affected, but Bank of America does not manage hedge funds.

Citi - on their own trading accounts have less than 5% of total income. Some domestic direct investment, real estate and hedge funds may be affected.

Goldman Sachs - - on their own trading accounts for about 10% of total income. Goldman, together with our clients and keeps money in domestic investment and hedge funds.

J. P. Morgan Chase and CO. - On their own trading accounts have less than 1% of the income of the company. One Equity Partners domestic investment fund, which made $ 141 million from $ 3.28 billion fourth-quarter earnings should be dismissed. The bank also has a hedge fund.

Morgan Stanley - Shares in the management of several hedge funds and one internal operation under threat, along with the rapidly changing our own Department of Commerce. In general, these shares Morgan Stanley less than 5% of revenues.

Wells Fargo has inherited some of their own trading operations after buying Wachovia in 2008, but lost much of this business to date.



The Wall Street Journal
January 21

Friday, January 22, 2010

Conference Board Predicts Productivity Rebound After 2009 Drop

According to an estimate Conference Board, a global productivity growth will accelerate this year after a sharp decline in the effectiveness of the European economy that recorded for the first time since 1991.

According to today's report of a study group from New York, a global productivity per worker will rise by 2.2% after its worst recession for 6 decades, leading to a decrease of 1% in 2009, the first time since the decline of 0,1% in 1991.

Last year's drop underlines fundamental differences in the reaction of the largest economies in recession. Productivity in the U.S. grew by 2,5%, as manufacturers cut back wages working hours faster than in the euro area, where output fell by 1%.

"Employers in the U.S. reacted to the recession much stronger than their European counterparts," - said in a statement Bart van Ark (Bart Van Ark), chief economist at the Conference. "In 2010, both Europe and the U.S. will see greater growth in productivity, which will be due out of the recession.

Productivity is the main reason why investors such as BlackRock Inc., The world's largest companies, asset managers, prefer to buy U.S. stocks. Gains may also help curb inflation, giving policy-makers, able to maintain a record-low interest rates, even during the economic recovery.

"We just had a very, very serious recession, but U.S. productivity grew up" - said Robert Doll (Robert Doll), BlackRock vice chairman and chief global investment in shares on January 6 at the presentation. "This is very unusual, and indicates the ability of U.S. corporate sector to quickly adapt to new realities."

Decrease
Johnson & Johnson, the world's largest manufacturer of health products, and United Parcel Service Inc., The largest forwarding company, among U.S. companies that are trying to survive by cutting costs. New Brunswick, branch of Johnson & Johnson in New Jersey, said in November that will dismiss more than 7000 employees worldwide, that will help save $ 1.7 billion by 2011. UPS announced its intention to cut 1,800 jobs because of cuts in the American administration module.

In Europe, 11 January, Munich Siemens AG, the largest engineering company in the continent, said that productivity gains and savings on procurement will bring profits from 1.3 billion euros ($ 1.9 billion) to 1.8 billion euros. French Thales Sa, Europe's largest defense electronics companies, 11 December announced that it plans to save 1.3 billion euros over 5 years to achieve "growth in productivity and simplify the organization."

At that time, productivity will grow this year, Van Ark said that the "unemployed" recovery, as in the U.S. and in Europe - is "the most likely scenario."

Productivity in the U.S.
Productivity in the U.S. will grow by 3% after the fall of employment by 3,6%. The reduction of working hours on 1,5% has helped increase productivity in the past year.

Fed Chairman Ben Bernarke said that he was "somewhat skeptical" about the fact that recent increases in productivity can be retained and this may be the reason to expect an increase in rentals. Productivity growth may limit employment in the short term, as firms can do a smaller number of workers and delay hiring new employees, in addition, efficiency gains could be temporary, said Bernarke November 16.

European productivity growth in the time dimension will grow by 2% in 2010, said the head of the conference. Within 16 national eurozone, German output fell by 2.2% and is projected to grow by 2,8% this year due to growth in output and reduction of working hours, the report said. France became one of the few European countries where productivity growth was recorded in the past year, and it amounted to 0,3%.

"Very bad"
"Innovation and Dynamics in Europe at a very poor level", - said Jan. 14 on the radio in an interview with Bloomberg Nobel laureate Edmund Phelps (Edmund Phelps), a professor at Columbia University. "Europe in decades and decades has been in bad shape."

Productivity in the UK falling faster than its European neighbors, a decrease of 1,9% due to the large fall in output. Under the plan, this year grow by 1,7%.

The global acceleration in 2010 will depend on emerging markets, said at the conference. Chinese productivity growth increased by 8,2% in 2009 and the expected growth rate this year is 7,7%.

"Emerging economies are becoming global competitors to be reckoned with on the basis of their high rates of productivity growth", - said Van Ark.



Bloomberg
January 20

Digging out of debt

Reducing debt in developed countries has only just begun


Deleveraging - this is a bad word during the painful process. There are several things that mean for the world economy more than ever, talking about how quickly developed countries could cut their debts. History suggests that severe financial crises are usually accompanied by long periods of debt relief, during which credit falls relative to the size of the economy. At this time the process repeats. Banks plummeting balances. Consumer lending in the U.S. declined 10 months in a row, which is the most extensive and long drop in history. But how far can this process go?

A new report McKinsey Global Institute (research arm of the consulting firm), is trying to answer this question. The report begins with a comparison of recent changes in the level of debt in 10 developed economies and 4 developing countries. Value of total debt to GDP (including debt created by homeowners, government, non-financial organizations and the financial industry) vary greatly from nearly 300% in the U.S., where it is lower than in many other countries. There are a few exceptions, such as Germany and Japan, which are the most developed countries, shows an increase over the last decade. Britain and Spain - is the most extreme of the country, shows an increase in total debt by more than 150% for each country, up 465% and 365% respectively.



Debts have grown up in different places and in different countries. With the exception of Japan, which has to deal with the consequences of its own stock market crash, the public debt to GDP ratio, is at one level or falls. With the exception of commercial property and buy assets with leverage, the world's largest corporations also vvyazli in debt. Corporate leverage, measured as debt to equity ratio was stable or falling in most countries before the crisis. It is the duty of the financial sector as a proportion of GDP, grew in most countries, especially in Britain and Spain, but some pockets of funding (such as investment banks) have shown a significant increase in leverage. Outside of Germany and Japan, where the shoulder was reduced, the greatest increase was in domestic households. Most developed countries are faced with more than 40% increase in the ratio of household debt to their income. Even there, however, growth was not similar. In the U.S. the majority of the debt created by middle-income households. In Spain - low.

Data provided by McKinsey, probably represent one of the most concentrated areas of credit costs, rather than the debt burden of the entire economy. As a result, the processes of debt reduction will vary in different sectors and countries. The estimated ratio of total debt to GDP, deleveraging (reduction of leverage) has just begun. In June 2009, this ratio fell only in the U.S., Britain and South Korea, while not so much. However, the composition of debt has changed dramatically, as government loans increased, while private debt fell. The financial sector declined the most. By mid-2009, the financial credit lever in most countries has fallen to an average 15 years before the crisis.

To determine where the compression is most likely, the study investigated how far can the growth of debt in different sectors and countries, taking into account the historical averages. Also take into account the ability of borrowers to meet their own debts and vulnerability to loss of income. On this basis, it can be assumed where there is a high, medium or low probability of deleveraging in the next few years. Half of the 10 developed countries in the sample record is one or a few sectors where there is a high vulnerability to reduce debt. It is not surprising that these sectors include households in the United States, Britain, Spain and, to a lesser extent, Canada and South Korea, as well as commercial real estate in the United States, Britain and Spain. Given the high risk of corporate and financial deleveraging, from Spain to be the most difficult way. The list contains no countries that have a high chance of reducing the national debt over the next few years.

Change speed
Determining the probability of further deleveraging is not the same, that the measurement of its likely impact. To do this, the study turns to history. Was found 32 examples of prolonged deleveraging (at least 3 years in a row, during which the ratio of total debt to GDP fell by no less than 10%) in post-crisis period. In some cases, the debt declined due to default. In others it was declined due to inflation. But about half the cases, which the authors report, regarded as the most appropriate point for comparison, the deleveraging going through a long period of contraction, when it grew less rapidly than production. This information is sobering. Usually deleveraging began two years after the crisis began and ended in 6-7 years. In almost every case, the reduction of production observed in the first 2 or 3 years. (Countries that have pledged or subjected defaulted debts of inflation faced primarily with a strong recession, but had a higher growth of production in the end than the "Protracted belt").

Worse, there are several reasons why the current mess could be longer than in previous periods. First, the extent of debt above. The biggest factor (286%) of debt in the group "zatyagivateley zone" was in Britain in the postwar period. Today, more than half the developed countries in the sample McKinsey in arrears of more than 300% of GDP. Secondly, the number of countries affected at the same time, means the difficulty of achieving a rapid increase in exports, which in the past supported the production. Thirdly, a significant increase in public debt with the weakening of demand in the short term, increases the total debt, which will be reduced. When the private deleveraging ends, it is necessary to reduce public spending.

In theory it sounds simple. In practice it would be devilishly difficult to get the desired balance. Investors may worry about the national debt long before the end of non-state reduction of debt, leading to the need to tighten the set screws at a time. The most painful blows deleveraging can be expected ahead.



The Economist
January 14

Thursday, January 21, 2010

LiteForex begins year bonus programs

On January 21, 2010 re-started the bonus program, which has become extremely popular with customers of companies LiteForex. In accordance with its terms, for each trading account, supplemented in the period from 21 January to 28 February 2010 inclusive, bonus up to $ 1000.

Participation in the bonus program gives the trader an opportunity to significantly reduce the personal financial cost and simultaneously increase trade opportunities. A similar bonus campaign was first held in autumn 2009, at the time of her termination interest in the system of bonuses from clients group of companies LiteForex not abated, and, given the wishes of customers, the company re-launched its bonus share of 21 January 2010.

"We did not change the terms of the action, because they determined its popularity among traders, working with a group of companies LiteForex», - explains the President of the Group LiteForex Alexei Smirnov. - "The bonus period, having started on January 21, will last until the end of winter - that is, until February 28. At each refill at this time we have a trading account bonus up to $ 1000.

In accordance with the terms of the size of bonus shares is in direct proportion to the amount of replenishment of the deposit. Bonus equivalent of 100, 200, 500, 700 and U.S. $ 1000, will accrue to the trading account, supplemented in amounts ranging from 300 to 1000, from 1000 to 3000, from 3000 to 5000, from 5000 to 10 000, and over 10 000 dollars respectively.

Profits earned by commercial operations using the bonus amount can be withdrawn from the trading account at any time in accordance with the wishes of its owner without any restrictions. The bonus amount may also be deduced trader with his trading account, but that he must commit no less than 50 transactions, of not less than 1 \ 10 of the bonuses.

"In order to withdraw from the account of funds received as a bonus" - continues to Alexei Smirnov, - "a trader should write a letter to his personal account manager, to allow the withdrawal of these funds. Checking compliance with all conditions of the action, the manager activates the possibility of withdrawal of the bonus amount from the account. The procedure is quite simple and does not require a long time - the dates are limited to one banking day.


The detailed conditions and restrictions for participation in the bonus shares issued in the public domain at the official site of the group of companies LiteForex
http://liteforex.org/promotions_depo.php.

The changing faces of global power

Collect the jaguar, bear, tiger and panda together, and you'll see a good show, but is unlikely to get a quiet life.

Acronym BRIC (Brazil, Russia, India and China) has become the symbol of emerging markets to strengthen the global economy. After a successful decade for the BRIC countries swept crisis, from which they quickly left.

Goldman Sachs, the financial group, which introduced the category of countries, believes that China may become the largest economy in the world until 2030. Taken together, the BRICs economies until 2032 will surpass the level of production of Group of Seven, which prevailed in the management of the global economy.

BRIC countries already have a large share in world trade than the United States. China, probably the world's largest exporter of goods last year, was supported by the unproductive services, India, Russia's oil and gas, leadership in agricultural commodity markets, the Brazilian super-competitive farmers.

Although the stock shares in the G7 countries are struggling to stay on a positive level during the past approximately 5 years, the BRIC stock prices, although with a steep or day and the sharp rebound during the global financial crisis, ended the decade rate 2 times higher than in 2005. BRIC equity index rose; Fund is open to investors in order to become the sector.

The world comes out of recession, is moving there in this transformational time the center of gravity in the global economy and its governance? Is this a turning point, as the Second World War, when the U.S. became stronger and confident, the economy of Europe emerged from the war with a high debt load, and the world is changing the global financial architecture? And, most importantly: Do participants ORDERS BRIC to rebalancing the world economy by getting rid of consuming the American model?

The most likely thing: There is not. BRIC countries is also fragmented and almost any co-operation is very problematic, but China, which is the dominant member of the Quartet, it still seems devoted to export economic model, in which it is dependent on other countries.

"So-called emerging economies, even in Bangladesh, are the players on the world stage," - said Jean-Pierre Lehmann (Jean-Pierre Lehmann), Professor of Political Economy from the School of Management, IMD in Lausanne, Switzerland. "I do not see any major upheavals in the next 10 years, as well as the fact that the financial center of gravity is definitely shifting to the east."

Pododno boys band or a street gang, the BRICs, most likely, was selected based on their different capabilities, rather than similarities. The size of China and its openness to global trade making it the economic power comparable to all other members of the group. Marcus Jager (Markus Ja"ger) from Deutsche Bank calls giperkonkurentosposobnogo industrial products "vosmisotfuntovoy panda in the house. India, similar to the population, but poorer and more economically closed, mostly more useful for investors and partners in their programs and business services. Brazil, despite the small number of producers, remains one of the largest in the world agroeksporterov; Russia after a weak attempt to diversify, in fact, only sells oil and gas.

The history of their rapid development is familiar to all, but still interesting. Ten years ago, only one of these countries had a credit rating, but now it is all four. Only 12 years ago, a default in Russia and the Brazilian currency crisis rocked the world economy, and today they have accumulated massive foreign exchange reserves.

At the BRICs account for about half of global growth between 2000 and 2008, growth was much higher than in the previous decade. But with this growth, came to unbalance the world economy.

The Chinese model of growth based on large-scale investment and exports, was accompanied by a huge positive current account balance across East Asia, coinciding with the U.S. current account deficit. And despite making its contribution to the maintenance of economic growth during the crisis is far from clear that the Middle Kingdom has changed its attitude to consumer demand, which could become a true engine of global growth.

A large scale Beijing in November 2008 announced a package of incentives at $ 585 billion and to ease credit conditions. But China's ability to create self-sustaining growth was in doubt. Rather than distribute the money in hand to increase consumer spending, and perhaps, encouraging imports, a large piece of the stimulus went into the long-loved fixed assets. "If global demand will not recover in time, or incentives not to cheer people, China risks eventually create excess capacity," - said Jager.

Razin, Sally (Razeen Sally), trade expert from the London School of Economics said: "The Chinese intervention exacerbated the existing problems and imbalances. We see a lot of excess capacity in export-oriented industries, such as an excess of steel.

Re-peg the renminbi to the dollar in 2008, after he was allowed to go up, also not helped the Chinese economy to move from exports to domestic demand. The effect of this decision is multiplied copied the actions of many underdeveloped countries, suppressing its currency so as not to lose competitiveness to China.

Indeed, despite the widespread decline in consumer demand considerably reducing the absolute level of current account surpluses in China during the crisis, which reduced the number of vessels carrying toys and players from the Shenzhen and Shanghai, China continues building up its stake abroad. IMF and others believe that the apparent change in the global balance of the world economy over the last year of a temporary nature. When demand rises, so did the exports of China, with all the old surpluses and deficits.

Despite the extravagance, Chinese consumer sector has become smaller over the last decade. The overall level of savings grew throughout the decade. Although much of this growth reflects corporate savings - savings of households also increased, but still, a large share of national income went to the company, not consumers.

Last year's study of McKinsey Global Institute has supported the view that many economists have long discussed: shortcomings in the system of social guarantees - one of the main reasons why Chinese households save. The most obvious three reasons: educational needs, safety in case of illness and care for their parents. Changes in these deep structural factors will never be fast. But this is not resolved by a simple show of appreciation of the yuan.

As for the other BRIC countries, whose growth trends are slower, they are unlikely to have a significant impact on global demand for some time. Although the economy of Brazil and India have grown even in times of crisis, the past of these economies suggests that they do not maintain high growth rates. India also faces the chronic problem of public funding, and savings rate for households is even higher than in China. Meanwhile Russia, whose economy has declined sharply during the global slowdown continues to depend on oil prices.

Ten years of economic growth is not enough to BRIC to grab the baton of global economic leadership by the United States and Western Europe. Group, or some of them might surprise the world with their progress over the next ten years. However, this will require qualitative improvements, as well as greater support for these changes by the authorities.




The Financial Times
January 17

DSS Bressert MT4 Indicator



Its calculation algorithm is very similar to that of stochastic indicator. The value above 80 signifies the overbuying, the value below 20 signifies the overselling.


Download

DSS Bressert.mq4

White House says stimulus has saved two million jobs

Emergency measures expenditure Obama rescued last year to 2 million jobs USA stated Belyi House Wednesday however warned that future economy remains questionable.

President Obama in aspiration shorten harming his popularity two-digit U.S. unemployment already urged Government adopt additional measures increase employment using $ 787-billionth package incentives that it adopted in February 2009.

Kristina Romer (Christina Romer), chap council Obama Economic Affairs awaits positive indicators creating jobs by spring but stressed that exists clear need additional "targeted actions" for combat unemployment.

"There uncertainty, in what side moves economy and when restored private sector", - told Romer journalists at conference during discussion quarterly report Congress of package incentives.

"What we dobemsya through year, see whether we growth consumptively see whether we firms who again started invest funds?" - She said.

Country experienced the action from strongest past 70 years recession after market meltdowns estate USA causing global financial crisis that turn boosted unemployment 10%.

In response proposal Obama on additional measures lower chamber Congressional endorsed last month package incentives on $ 155 billion Senate how expected decides his version working new legislation coming weeks.

Belyi House using two different approaches for determining influence stimulus package considers that employment USA grew between 1,5 and 2 millions workplaces by end 2009 that resulted package incentives.

Romer considers that Packages incentives help preserve to 3.5 million workplaces by end year current.

Furthermore, Belyi House said that 640,000 workplaces were saved or created by direct infusions funds from package, implying that this score may be understated.

Money inject into economy may render reinforced influence rentals who beyond value dollar due so called multipliers which increase effect economic impact moment when Government pumping her money.

Approximately third package incentives already spent and obtained inversely in form taxes. Given money which were transmitted but yet not spent this sum increases to half of total.

Belyi House considers that these data added by 3-4 percentage points growth in third quarter and approximately 1,5-3 in fourth.

In annualized, Economics USA grew on 2,2% in third quarter after decrease on 0,7% for preceding three months.

"Without Act about restoring, we would continued falling in third quarter", - said Romer. She noted that analysts private sector predict 4% growth in fourth quarter, and most this activity will possible thanks package incentives.



Reuters
January 13

Commodity Prices Buoyant in Year of Crisis

• Prices have jumped up, despite high stocks because of weak demand in a recession
• The price impulses affect the realization that the hardest world recession behind
• Increasing demand requires additional capacity in many commodity sectors
Commodity prices have managed to stay afloat in 2009, and expected further growth in 2010 due to growth in global activity since the crisis.

In early 2009, a sharp decline in prices last year, it seemed, usually heralds the misery for commodity markets during and after the global recession. In the end, however, prices have jumped in a relatively short time and has had a tremendous rally in the second quarter of 2009, after weakening in demand during a global recession, 2008-2009, despite the relatively high stocks (see Figure 1).



This rally in commodity markets at an early stage of recovery in world industrial production (and in anticipation of global economic growth) in contrast to past experience. After the last global recession prices generally continued to fall or grow very moderate pace, much weaker than this year.

IMF price index for commodities, for example, rose more than 40% for 8 months from the date when the world's industrial output reached a bottom in February 2009. In contrast to these data, after earlier recessions, these figures have grown an average of 5% for 8 months after reaching the bottom (see Figure 2). Nevertheless, commodity prices also fell more rapidly and with greater magnitude in the second half of 2008 than during previous downturns.



What can explain the early rally in commodity prices? As the prices of risky assets in general, the initial impetus was the assumption that the worst global recession is completed and that through a comprehensive social intervention could reduce the uncertainty and systemic risks in the financial sector. Against this background, the expected improvement in the short term commodity markets will be because of the growing desire to retain the stock.

Commodity Funds
At the same time, improving financial conditions that increase the availability of credit to finance purchases at more reasonable prices with an increase in capital inflows into commodity funds, probably contributed to hedge stocks. Additional growing demand for stocks and some stabilization in building inventory for the requirements of end-user has reached the lower limit, allowing you to reduce excess supply (current supply current minus final consumption). Downward pressure on spot prices, in turn, also weakened.

Then in 2009, additional impulses came from the floating recovery in developing Asia, and throughout the year, stronger than expected global activity as a whole. Growing evidence of a relatively favorable economic performance of many emerging and developing economies have had a strong influence on the price of commodities, as well as the prospects for demand for primary commodities are more dependent on economic growth in these countries, given the steady increase in their share of the market. (see table). In addition, demand for commodities in these countries, more confident than in developed economies.



Within these overall trends, the magnitude of price increases in 2009 varied considerably across commodities. Prices for fuels and metals rose much more than the price of food and agricultural raw materials. Spread in the price changes caused by normal differences in cyclical sensitivity of demand for goods, as well as in specific commodity factors.

In particular, the oil markets, prices were supported not only the expectations of recovery, but also a reduction in oil supply countries ekspoterami, while metals prices were supported by popoleniyu stocks in China, as well as some limitations of supply. In contrast, the yield favorable results led to a weakening of prices for some major food crops in 2009.

Prospects for 2010
Looking forward to 2010, prices for many commodities, and probably will continue to increase. The demand side should be the main source of upward pressure, as the global activity is expected to grow faster. From inventory, remaining above the average for many products, and considerable unnecessary spare capacity in many product sectors, upward pressure is likely to remain moderate for some time, until a stronger-than-expected global growth, or other surprises do not lead to a sharp decline in these buffers.

Prospects for commodity prices are also dependent on global macroeconomic conditions in the broader sense, including the dynamics of prices in international markets for goods and services in general.

Information about the expected future spot prices, obtained from the major commodity futures options, indicate that investors expect higher prices in 2010, but the likelihood of another sharp jump in commodity prices in the short term seems unlikely.

Expected continued high prices
Looking at the future value of commodities in the longer term, it is expected that the prices by historical standards will remain high. Implications of the crisis have contributed to lower prices below their peak in 2008, but demand is expected to continue a gradual increase in temperature due to the industrialization of emerging and developing economies. Given these requirements, will require further expansion of capacity in many commodity sectors with the need to absorb the higher cost sources.



IMF

Don't Fear the 2010s

Look to the correct misconceptions and exaggerated fears of a new decade. Nick Gillespie (Nick Gillespie) says that the avian flu and will be Y2K (problem with the computer in 2000) of the new decade.

Several previous decades were just as dismal as the past and which, fortunately, resulted in encouraging notes (by the way, the calendar purists who believe that the decade really starts from 2001 to 2010, you are part of the problem). Disputed elections, international terrorism, more explosions bubbles than on New Year's show Velka' Lawrence (Lawrence Welk). We really went through the computer goes on the 2000th year, avian influenza and the continued increase in the saggy pants?

There was something more serious, that was not the case in the past decade (another indicator of aimless decade: in this period does not appear no common name). It was one of the worst decades for stocks, the U.S. mired in two endless wars and heavy, the real total federal spending increased by more than 100%, unemployment is at double-digit figures, and the second time in 10 years, the government is preparing to intervene in the system thoroughly health (this time not only for free). The biggest danger to long-term economic growth and, hence, living standards, a failure to understand where does the public sector and the private begins. It is hard to avoid the feeling that sinking, the state-controlled GM could become a prototype of the American response Lada.

First of all, our problem lies in the fact that we spent too much time and energy to fight the Phantom Menace, for instance with the ideas that vaccination causes autism in children, cash machines with a menu in Spanish threaten national sovereignty and common among athletes steroids mess up a record number of fans attending the Higher baseball league. All of these critically important issues deserve a few Congressional hearings, while should have been simply washed away, as an antibacterial hand gel.

For such a sad parting gift by the end of this dark first decade of the 21 st century, so corrupt that the Boston Red Sox trouble to win not one but two World Series, we can thank the failed suicide Farukh Ubdulmutallaba Umar (Umar Farouk Abdulmutallab) for what he took we have the inalienable right to use the bathroom closest to the height of 30,000 feet. Indeed, we can only wait for the Minister of National Security Directive Janet Napolitano (Janet Napolitano) that all private pilots will now have to be a Commandos as a condition for flight experience.

Although the bomb in his underwear Abdulmutallaba on the way from Amsterdam to Detroit did not explode, his unsuccessful attempt (thanks to the heroic actions of passengers) sparked one of the most common and overblown worries of the past decade, which lies in the fact that terrorist acts have become the "new norm" and daily phenomenon in the United States.

John Mueller (John Mueller), a political scientist at Ohio State wrote that such fears are wrong, because their roots lie very deep. "The likelihood that a person living outside the zone of hostilities, will be killed by terrorists during the eighty-year life, is about 1:80000," Mueller wrote in the American Interest in 2008. "For comparison, the chances of perishing in a car crash over the same period of time equal to 1:80. Well, rational analysis should never interfere with strong feelings.

What, then, would be hysterical fears in the coming decade? By definition, these concerns must be both shocking and plausible enough to convince politicians, stars, benefactors of mankind, the leaders of industry and media tycoons in the fact that our society is hanging by a thread.

A classic example back in the 1980s, when Tipper Gore (Tipper Gore), the future wife of Senator Al Gore (Al Gore), which helped open Parents Music Resource Center, asked the Senate Committee on Commerce, Science and Transportation, with the important issue of sexual, violent and occult imagery in pop music. Mrs. Gore said in his best selling book (now it is hard to find), 1987 "Psychology of the growing child and indecency of society:" With satanic symbols at concert venues, and album covers, such as the Ozzy Osbourne (Ozzy Osbourne), other heavy metal band convince teenagers to what one expert called "the cult of the eighties. Many children are involved in experiments with satanic games and become obsessed with it.

Perhaps only through the intervention of Gorov we represent a country which is struggling with a tenacious grip of Beelzebub, and with the heavy metal band Ronnie James Dio, which should add, sometimes seem preferable to Ben Bernarke and Timothy Geithner.

Here's a list of probable panic in 2010, some of which are already flourishing.

China is ready to eat our lunch
There are not many things that are thrown in the sweat of fear higher strata of Americans, one of these is the idea that the less-developed nation is rapidly moving towards economic dominance. In the late 1980s there was obviously an understanding that the Japanese government subsidized, super-hierarchical and tightly intergrirovannye mega-corporations is clearly superior to its American copy. A large number of bestsellers, such as "Rising Sun" and movies such as "Gung Ho!" Wanted to outdo their American dream. Such fears have collapsed along with the Japanese economy in the 90s, which still pull out of the "lost decade", which lasts for almost 20 years.

You can expect a repetition of history, this time with China in the lead role. Holding the exchange rate low, they tied her to the dollar, and, finally, that the Chinese "thrown to the work of hundreds of thousands or even more than Americans," - said Sen. Charles Schumer (Charles Schumer), calling for a trade war. After several quarters of low or nonexistent growth, be prepared to calls for the exile of dissent and individualism in business, which will take place up until such time as the Chinese government does not make a mistake. If history is any guide, these events are already in the pipeline.

Peak oil production will keep growing
You do not need to be a supporter of global warming, to assume a situation where the world's oil finally runs out, that would raise the price of oil to unprecedented heights, marking the beginning of a glorious era in which energy will be produced by running in a hamster wheel, or using other renewable sources. Conservatives who advocate energy independence (for example, Sarah Palin (Sarah Palin) from the former government) also supported the idea of "peak oil", that is a point at which oil reserves are in the phase of irreversible decline, and this means that the increase domestic production is only politically possible.

It's funny that peak oil is predicted on a regular basis from decade to decade, but something always prevented: the opening of new wells, the fall in prices due to economic shocks, new technology to extract more fuel from fewer resources. Look at the new oil panic in the moment when the world economy recovers and demand is growing again. And after a gasoline rose to $ 4 per gallon, before falling again to $ 2.50.

All that can be invented - has already been invented
A new Zogby poll shows that one third of Americans believe that in 2010 svershatsya great technological achievements. Who was not disappointed by the lack of jetpacks and dog racing tracks, as on "The Jetsons"? iPhone came out 3 years ago, and since nothing new was invented, right?

When we can not complain that the pace of innovation is too fast and in the future it will cause a shock, we love to complain about what has already passed the years since, when emerged something radically new in the world. Given that the first big leap into the Internet, networked computers, and electronic commerce have launched more than 10 years ago, we are quite prepared for the constantly renewed panic before, that we live in the Middle Ages, and we need innovation in order to get out of recession and never go back to that stage.

Mission accomplished: The war against boys
There was not a decade without any fuss about changing gender roles. Typically, the bulk of fears that the boys are pampered dandies. In the 1950s feminist opponents decried "momizm", which means the household having a pants monster, formerly known as Mom.

Over the last decade wise observers have looked past the courtrooms and legislatures, while continuing to promote the idea that men still rule the world. Instead, they were worried about the prospects for reducing the boys, who are badly in school, got into the police station or that the percentage of unemployment among men than among women. Not surprisingly, they were under a lot of medical care, and diagnosis sounded like attention deficit and disorder. (Who can concentrate when the future is bleak and must report to zhinschinoy?) Many colleges have recognized that they observe a positive reaction after pumping Y chromosome. This is only a matter of time before the Very Serious People will raise the question of what we can do with this dangerous and endangered species.

We must remove the bubble of higher education
Forget about all the disturbances discussed in the last decade, that college was a cruel hoax, which was created for the impoverished lower classes, so that afterwards they worked barista (making coffee). Forget everything you've heard of "Generation after generation," those poor college graduates who come from the university with a crushing debt that keeps them away from the American dream known as the mortgage - can not afford it. (Forget also that the typical higher education will hang debt of $ 23200, get ready for the amount between $ 200,000 and $ 1 million. Or more for a career and a diploma). Forget about the fact that only 53% of college students were released after 6 years after the start of school.

In this decade are strong fears that the admission to the college will become a bottomless tank. Especially to increase the price of stronger educational programs (thanks to a massive influx of students) and will go up, as the cost of health care. Undoubtedly, the number of students in community colleges will increase, but the current release has nothing to do. How can we compete with China (see above) and other developing nations, if the next generation does not graduate, and three semesters of advanced mathematics, does not receive sufficient engineering knowledge to construct an infinite number of bridges in the future? And as our children will move forward if they are right now will not receive post-secondary education?

Why children warns of sex?
At least with the 1920s the older generation has consistently worried about the possibility for the younger generations to have sex not only more likely than older ones, but also that they enjoy them more. Now, prepare yourself for the opposite. According to the Alan Guttmacher Institute and other resources to conduct such research, older students less interested in the opposite sex, pregnancy rates declining since the 1990s. Regardless of what is the cause of a decline, the consistency of social and health services close to reality, since no one hides the true cost of health care reform and a record budget deficit, it all cools ardor of lovers, makes us think about who will pay for baby boom.

Of course, hardly the above list is not exhaustive. For example, it is difficult to imagine that we live 10 years without a conference at the White House on the deteriorating state of culture, some fatal, but attractive species of mammals are identified as endangered even though their population will grow, and we suddenly recognize that our basic common culture is under threat of failure to perceive The Brady Bunch in the training programs, and viruses, or grow, or disappear with alarming frequency.

The important point is that such non-standard and overblown fears of distracting us from what is really important. And this is really bad, if we're going to live another decade, like the past.



The Wall Street Journal

Gold will be the next bubble if we don't learn our lesson

The best feeling in the beginning of the year - this feeling of infinite possibilities that it brings. Nearly all have plans. We are all going to quit diving and swimming. Or pay debts and find a new job.

In general, these aspirations can be divided into two categories: things that we did and now want to stop doing, and those things that we did not do and want to start.

A cursory review of the last decade provides enough material in the "don'ts" in the business. After several years of existence of bubbles, excessive borrowing, weak monetary policy, the failure of management and banking crises, suggest a few New Year's decisions that, if we look more than a month, can be prepared for all of us a more stable financially and economically productive future.

Politics: spend less time on new laws and more to think about the best ways of spending taxpayers' money (remember: it means finding ways to improve efficiency, rather than increasing costs).

Regulators: do not invent new rules without careful analysis of their subsequent impact on small and large business.

Consumers: before you take the new debts, you must plan their actions in the case of a sharp rise in interest rates or unemployment.

Chief Financial Officer: before you borrow, think about how to deal with payments in a sharp rise in interest rates and reduction of reserves.

Fund Manager: If you see that the company pays too many, makes stupid acquisitions or should a dangerous strategy - talking about it and vote accordingly.

Executives of banks: it is necessary to draw conclusions about why all of you are angry. Need to perceive the words of the report on financial stability, the Bank of England ( "If your own costs would be 20% less between 2000 and 2008, the banks would create a £ 75 billion of additional capital, even more than was allocated for public sector period of crisis "). So it should address the issue of compensation, rather than wait until the policy will take further action.

Accounting: work for the benefit not only employers, but also investors who are trying to understand the data they provide.

Investors: If the reports seem too good to be true - so probably is.

The lessons we should learn, will be felt for some time. However, the existent and the danger from the influence of false conclusions: for the shares seems to have been detrimental decade, but this means that traditional forms of savings, such as gold, may be the next soap bubbles.

Speaking of bubbles, I was pleased to see that sales of champagne in some supermarkets rose by nearly 50% in December compared with last year. I think that we are entering a new year on a positive note, despite the recession. This is encouraging news, and I have just emerged a new promise: this year I'm going to drink more champagne. If the constraints on the budget will allow, it will Prosecco. Be Healthy!

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