The USA accept WTO-plan as negotiation basis

Today the United States accepted the proposals to reach a multilateral agriculture agreement of the world trade organisation (WTO). According to the most important WTO-negotiators
for agriculture, the ambassador Crawford Falconer of New-Zealand, the US have been prepared negotiate on the basis of figures that he announced in July. However, the condition is that all other countries wants to work with the same parameters.
In that design of agreement the USA wants to bring back their agriculture subsidies between 12.8 and 16.2 billion dollar a year. So far Washington refused to go under an envelope of 23 billion dollar. The Intention is to drag an agreement in so-called Doha-round concerning the further liberation of the world trade.

The reason why the agricultural policy strives for agriculture subsidies, is stable food production. Consumers must buy agricultural products for reasonable prices.
I think its good for the world economy ( Europe, America, Asia,…) that everyone pays the same price of subsidies for agriculture. The import and export in agriculture machines will stabilise. It’s also very important to have a good world trade, especially for developing countries.

Sarah Struyf

http://www.hln.be/hlns/cache/det/art_589360.html?wt.bron=hlnBottomArtikels

Price of oil for the first time above 80 dollar.

A barrel North sea-oil in London increases more than 3 per cent and the cape of 80 dollars has for the first time exceeded. Since the begin of this year, oil has already increased by more than 30 per cent. Also in New York the price of oil increases with 3 percents. The cause of the price lies in Cushing. The city in Oklahoma is the most important supply point for oil in the US. The oil stocks have decreased the last week to the lowest level since December 2005. the market feares that the stocks are exhausted. A large part of the oil production capacity in the golf of Mexico wasn’t used last week because of the passage of a tropical storm. The question if oil will remain also the coming trimesters high and the offer remains limited. Another factor why the prices of oil increases is the weak dollar. There is very high link between the dollar rate and the price of oil. That is as a matter of fact also the case for other raw materials such as purchaser, silver and gold. A weak dollar makes oil cheaper and therefore more attractive.

I think that the American Economy is in a dept point. They have problems with the dollar, with oil prices and mortgage loans. The government will have to intervene if they don’t want more terrible. Now it’s good for Europeans, because everything in America is much cheaper, but Europe has to be careful. Because the bad economy can blow over.

http://www.tijd.be/nieuws/economie_financien/artikel.asp?Id=3238924

Benjamin Benoit

Vice president Fed pro fixed inflation goals.

The vice president of the Fed, changed his point of view concerning fixed inflation goals. Only four years ago, Donald Kohn said he was very skeptical about the Federal Reserve maintaining these goals. But now he says the subject is open for debate. Unlike other central banks the Fed doesn't have such goals which refects in less stable prices. Kohn admits the advantages of the system. When fixed inflation goals are established, it becomes much easier for governments and companies to plan their investments. Even the president of the Fed, standing on the right in the picture next to Donald Kohn, has already plead for fixed inflation goals. He thinks that in this way the transparency of the Federal reserve will improve.

Personally I think that it's dangerous to focus too much on the prices. But it's hard for the Fed not to, because of the housing bubble. There were lots of social dramas due to rapid rise of the asset prices. So the public opinion wants this fixed as soon as possible.
When focussing on prices the Fed risks to lose other items like employment out of sight.
I don't argue the fact that fixed inflation goals have proven their use for other central banks, like the European central bank. But I think you can't condem the American system due to the housing bubble. This would have happened even if there were fixed inflation goals. There would still be low interest rates which resulted in long-term mortgages. I just want to say, you can't condem a whole system, which has already often proven his use, by one event.

Thomas

source: http://www.tijd.be/nieuws/economie_financien/artikel.asp?Id=3226121

US Dollar vs Euro

Euro at a new high.

This morning the euro rose to a new height namely 1,4134 dollar. This is the highest rating ever for the euro. Lately this has been due to the intrest expectation. But the decline of the dollar this morning is related to the important figures from the American house market, wich will be released tomorrow. Wich are speculated to be the lowest in 5 years. The way Americans feel about their economy will also be released tomorrow, this is also expected to be at its lowest.
The dollar is also losing ground to the British pound and the Canadian dollar.

Well this is good news for us, a vacation in the US is cheaper :-) So I would say, go pack your bags.
Now other then that this doesn't mean anything promising for the Americans since their precious dollar is at an almost all time low. All the figures that are published are low so this is a clear indication of the decline of the American economy. Someone has to wonder what effects this will have on the rest of the world.
Personally I think this might be a good indication for the US governement to start pumping money in their own economy instead of into war. And with the elections coming closer I bet this will have a nice impact on the voters their choice.

Nico Cottry

Source: http://www.tijd.be/nieuws/economie_financien/artikel.asp?Id=3226878