Global-View D.O.G. Index July 26, 2011 U.S. Close

20:55 GMT July 26 The GlobalView.com D.O.G. investor purchasing power index is closing in North America at .4933, 0.58% from its Monday close .

As for its key subcomponents, the USD forex purchasing power index is .7185, 0.69% . The forex index is value is calculated against the top six trading currencies.

Against gold, the USD purchasing power index is currently worth .1780, +0.23% .

Against crude, it is at 0.4482, 0.34% . The D.O.G. Index base is 1.00. It is set against levels from the start of 1999, as of the initial launch of the euro .

Mid-Day Report: Greenback Still Weak on Concerns Over Failing U.S. Debt Talks

The greenback remained under broad-based pressure as there is still no sign of any solid progress in the debt talks in U.S. and rising risk for the rating agencies to downgrade U.S. top credit rating. The single currency surged to the highest level since 5 July of 1.4522 after triggering stops at 1.4450 and 1.4500. Hawkish comments from ECB’s Noyer were seen helping to push the euro higher as he said the central bank is in a state of strong vigilance, however, the single currency retreated ahead of U.S. opening in part due to a denial of the comment from Noyer and some traders are awaiting the release of U.S. July consumer confidence index and new home sales at 14:00GMT, market consensus at 57.9 versus previous reading of 58.5 but there are rumors that the number may come even lower at 56.00. A

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Armageddon 11 Days Away

 No matter how the rhetoric goes, the facts will show that House Speaker John Boehner and Republicans have walked away from the debt ceiling and spending cuts.  The country now has 11 days left before defaulting on the United States debt and a significant drop in the country’s AAA credit rating.

While Boehner and Obama agree on very little, they profess to agree on the importance of not defaulting.  The repercussions of such an action would cause tremors throughout the global economies. 

Unfortunately, Boehner’s caucus contains a minimum of sixty members who seem to feel default is acceptable.  These 60 Tea Party members have left Boehner hanging out to dry and the House Speaker has tried to negotiate in good faith.  But, there is no doubt, the Speaker is fighting for his po9litical life. 

The Tea Party has most likely damaged the Republican Party permanently.  On the other end of the spectrum, it has been reported that in his efforts to meet Boehner halfway, the leftist extremists within the Democratic Party are said to be quietly holding firm in opposition to projected cuts in Medicare, Special Security and Medicaid.

The Grim Reaper

At 5:30p.m. on Friday,

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Daily Report: Dollar Rebounds on U.S. Debt-Ceiling Talk Progress

The greenback rebounded as U.S. President Obama signaled there is some progress in the debt-ceiling negotiations. Republican House leader Eric Cantor said the deficit reduction plan, so called Gang of Six proposal, was constructive but more work are still needed to be done. President Barack Obama also called the reveal of this proposal ‘good news’, his endorsement of the deficit-cutting measures was interpreted as a step forward in raising the debt-limit so as to avoid default. His remarks led some dollar-buying activities especially against the low yielding currencies like yen and Swiss franc, USD/JPY rebounded from yesterday’s low of 78.82 to an intra-day high of 79.32 before retreating again as IMF reported that Japan’s economy is showing signs of recovering from March earthquake and tsunami which shook the country and could expand later this year especially in its manufacturing sector, they expect Japan to show a 2.9% growth from this year’s 0.7% contraction. M

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FX Briefing – Hopes of eurozone debt crisis abating

Given the current fiscal policy uncertainties on both sides of the Atlantic, exchange rates remained relatively stable during the first half of the week. Although the week in which an agreement on raising the debt ceiling in the US should have been reached is drawing to a close, there is no sign of a solution to the conflict. However, most observers are still confident that the policymakers responsible will not let the government tumble over the brink and that a deal will be reached, if only belatedly.

In this respect, Europe has already made ogress. After the market quake in Italy, Eurogroup leaders hastened to find a solution for Greece. On Thursday, they agreed on a further rescue package for Greece.

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EU Delivers New Funding Plan For Greece, Extends EFSF

The EU summit ended with new measures to fund Greece and stabilize the sovereign crisis in the Eurozone as a whole. The result surprised to the upside as it delivered plans to provide liquidity to Greece and to substantially improve the country’s public finance. The leaders also agreed on an ambitious reform of the EFSF, making it more flexible and effective, Yet, the drawback is that the document did not provide enough details on the reform of the EFSF.

EU finance ministers agreed on a new bailout package for Greece. The total funding offered by the EU/IMF will be 109B euro, an amount higher than the projected deficit of 103B euro from 2011-2014. Involvement in private sector will be on a ‘voluntary basis’ and the total contribution will be around 50B euro (the net contribution of 37B euro and 12.6B euro from a debt buy back program).

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Kicking the Can Down the Road One More Time

Kicking the Can Yet Again
It’s Not Just Greece
Who is Going to Buy that Debt?
You Have to Admire the Commitment
The Problem with US Employment
Washington DC, Vancouver, NYC, Maine, and now Europe

This week we start with the latest version of the solution to the European Crisis, the details of which are now coming out. Then we look at the global economy, and some signs that seem to point to a softening. And then there’s some data on US employment from a friend who has some thoughts about what we really need to do to get unemployment to come down. There is a lot to cover.

But first, we have posted the latest of our Conversations with John Mauldin on the website. It is with Dylan Grice of Societe Generale in London, and he is just brilliant. Subscribers will love it. Basically, Conversations with John Mauldin is my subscription service where you can “listen in” on my conversations with my friends from around the world talking about the topics of the day. Subscri Read the full article…