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Gold Hits Record $1,009, Oil $111, Euro $1.56

March 14, 2008, 5:39 pm
Filed under: Britain, comex, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, Euro, Europe, food prices, foreclosure, gas prices, George Bush, global economy, gold, Great Depression, Greenback, housing market, Inflation, interest rate cut, interest rate cuts, jim rogers, nymex, Oil, palladium, Petrol, platinum, rate cut, S&P, silver, Stock Market, subprime, subprime lending, tax, United Kingdom, US Economy, Wall Street, wheat, White House, Yen

Gold hits new record at $1,009

Bloomberg
March 14, 2008

Gold surged to a record $1,009 an ounce in New York as the Bear Stearns Cos. bailout and a plunging dollar increased demand for the precious metal. Silver also gained.

Bear Stearns got emergency funding from JPMorgan Chase & Co. and the New York Federal Reserve. The securities firm said its cash position had “significantly deteriorated.” The dollar fell to a record against the euro and a 12-year low against the yen. Gold has jumped 19 percent this year, while the Standard & Poor’s 500 Index fell 13 percent.

“Gold’s assault on $1,000 is happening for a good reason,” said James Turk, founder of GoldMoney.com, which had $337 million in gold and silver in storage for investors at the end of February. “Gold is not only an inflation hedge, it’s a catastrophe hedge. Gold is becoming increasingly important as the credit crunch continues to spiral out of control.”

Gold futures for April delivery rose $5.70, or 0.6 percent, to $999.50 an ounce on the Comex division of the New York Mercantile Exchange. The price reached the highest ever for a most-active contract at 10:45 a.m., topping yesterday’s record of $1,001.50. The metal has tripled in the past five years.

Silver futures for May delivery climbed 23.5 cents, or 1.2 percent, to $20.655 an ounce. The price has gained 38 percent this year.

“Gold at $1,000 is a clear sign of a lack of confidence in the dollar and the Fed’s handling of monetary affairs,” said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland.

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Oil Hits Record $111, Euro Reaches $1.56

AFP
March 14, 2008

The dollar struck a fresh all-time low against the euro Friday as gold prices traded close to record highs a day after topping 1,000 dollars for the first time on US economic woes.

Oil prices fell on profit-taking after striking an historic peak of 111 dollars per barrel Thursday.

The European single currency reached a record high of 1.5651 dollars in Asian trade Friday, prompting the EU presidency to voice deep concern.

In later European trading the euro stood at 1.5566 dollars, down from 1.5624 late on Thursday in New York.

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Jim Rogers: Abolish The Federal Reserve

http://video.google.com/videoplay?docid=-6046520409389956642&hl=en

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Ron Paul: Fed Injection A Disaster

March 14, 2008, 3:28 am
Filed under: 2008 Election, bernanke, Big Banks, C-Span, CNN, Credit Crisis, DEBT, Dow, Economic Collapse, economic depression, Economy, Federal Reserve, Fox News, global economy, gold, GOP, Great Depression, Greenback, health care, housing market, Inflation, Iraq, John McCain, liquidation, neil cavuto, rally, Ron Paul, S&P, Stock Market, subprime, subprime lending, Torture, US Economy, Wall Street, Washington D.C., ww4

Ron Paul: Fed Injection A Disaster

http://www.youtube.com/watch?v=CHKF0hcF5hs

Ron Paul: A Recession is Tough Medicine

http://www.youtube.com/watch?v=GoNMG5-a15k

Ron Paul Warns Of Economic Worldwide Collapse

http://youtube.com/watch?v=0vcc59kf2IU

$1,000 Gold Has Officially Arrived: A Warning From Ron Paul
http://www.nuwireinvestor.com/blogs/inv..00-gold-has-officially-arrived.html

Ron Paul Speaks at Freedom Rally in D.C. April 15, 2008
http://www.grannywarriors.com/rally.htm

Ron Paul v. Bushian Torture
http://www.lewrockwell.com/blog/lewrw/archives/019942.htm

Video: Ron Paul On CNN – (3/10/2008)
http://www.youtube.com/watch?v=KcsYdjX502Y

Ron Paul: Fixing What’s Wrong With Iraq
http://pressmediawire.com/article.cfm?articleID=18317

Man gets 10 months for firing shotgun at Ron Paul sign
http://wenatcheeworld.com/apps/pbcs.dll/art..669206757/1001

Ask Congress to pass Ron Paul’s health care bill
http://www.ronpaulwarroom.com/?p=8468

Ron Paul Endorsements Keep Pouring In
http://www.nolanchart.com/article3163.html

Ron Paul leaves open door to third-party bid, unlikely to support McCain
http://rawstory.com/news/2008/R.._0310.html

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Dollar Declines, Fed May Cut Rates 75 Points

March 12, 2008, 3:13 pm
Filed under: bernanke, Britain, central bank, Credit Crisis, Dana Perino, DEBT, ECB, Economic Collapse, economic depression, Economy, Euro, Europe, european central bank, Federal Reserve, food prices, gas prices, George Bush, global economy, Great Depression, Greenback, Inflation, interest rate cut, interest rate cuts, Iraq, marc faber, Oil, Petrol, rate cut, russian mafia, S&P, Stock Market, United Kingdom, US Economy, Wall Street, War On Terror, Warren Buffett, Yen | Tags: Standard & Poor

Dollar Declines, Fed May Cut Rates 75 Points

Bloomberg
March 10, 2008

The dollar weakened against the euro and approached an eight-year low versus the yen as traders bet the Federal Reserve will lower interest rates by at least 75 basis points to avert a recession.

The currency traded within a cent of a record low against the euro as futures indicated 96 percent odds the Fed will cut its benchmark rate to 2.25 percent on March 18, 175 basis points more than the Bank of Japan’s and 175 basis points less than the European Central Bank’s. The U.S. currency weakened against a basket of major trading partners to near the lowest since the index began in 1973.

“What’s been driving the market is U.S. economic developments and expected interest-rate differentials,” said Thanos Papasavvas, head of currency management at Investec Asset Management in London. “This is a weak-dollar story. We would expect the Japanese yen and euro to continue appreciating.”

The dollar fell to 102.33 yen by 7:24 a.m. in New York, from 102.67 yen on March 7, when it slid to 101.43, the lowest since January 2000. It dropped to $1.5364 per euro, from $1.5355 at the end of last week, when it declined to $1.5459 a euro, the weakest level since the European single currency’s debut in 1999.

The yen advanced 0.4 percent to 157.20 per euro as the Cabinet Office said Japan’s equipment orders jumped 19.6 percent in January, the fastest pace in more than seven years.

The U.S. currency declined to $2.0197 against the pound, from $2.0134 on March 7, after a government report showed factory-gate in February inflation matched the fastest annual pace since 1991. The dollar also dropped 0.2 percent to 1.0233 against the Swiss franc and 0.5 percent to 5.1361 Norwegian krone.

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Faber: Bernanke Will Destroy Dollar

Market Watch
March 9, 2008

Federal Reserve Chairman Ben S. Bernanke will “destroy the U.S. dollar” by cutting interest rates, investor Marc Faber said.

Bernanke’s reduction in the target rate for overnight loans between banks to 3 percent has spurred a rout in U.S. stocks and gains in oil and gold prices, said Faber, the Gloom, Boom & Doom report publisher who told investors to buy gold at the start of its six-year rally.

The U.S. is now in a “de-leveraging” phase where banks make fewer loans, stunting economic growth, Faber said. He estimated that a U.S. recession began two or three months ago.

“In the U.S., they pursue essentially economic policies that target consumption, which in my opinion is misguided,” Faber said in an interview with Bloomberg Television from Chicago. “They should pursue economic policies that stimulate capital investment and capital formation.”

The Standard & Poor’s 500 Index is down 9.7 percent since Sept. 18, when the Fed began cutting the fed funds target to 3 percent from 5.25 percent. The dollar has lost 9.2 percent of its value versus the euro, crude oil futures gained more than 29 percent and gold added 34 percent during that time.

Further interest-rate cuts may spur inflation and reduce the value of 10- and 30-year Treasuries, Faber said, calling the bonds “a disaster waiting to happen.” Ten-year notes fell to a four-year low of 3.44 on Jan. 22.

Press Secretary Perino: I’ll Be Fired If I Talk About the Dollar

http://www.youtube.com/watch?v=C-Cvg9deslg

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Fed Cuts Interest Rates 75 Basis Points

January 23, 2008, 4:07 pm
Filed under: 9/11, Australia, Bank of America, Bear Stearns, bernanke, Big Banks, bilderberg, black monday, bonds, Britain, central bank, CFR, Credit Crisis, DEBT, Dow, Economic Collapse, economic depression, Economy, engineered recession, Europe, european union, Federal Reserve, foreign buyout, FTSE, gas prices, George Bush, global economy, gold, Great Depression, Greenback, hong kong, housing market, Inflation, interest rate cut, interest rate cuts, Merrill Lynch, Northern Rock, Oil, Oppenheimer, Petrol, rate cut, Russia, S&P, Stock Market, tax rebates, US Economy, Wall Street

Fed Cuts Interest Rates 75 Basis Points

AP
January 22, 2008

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The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.

The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest funds rate cut on records going back to 1990.

Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world’s largest economy was spreading worldwide.

Despite the Fed’s bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading.

In a brief statement explaining its move, the Fed said that “appreciable downside risks to growth remain” and officials pledged to “act in a timely manner” to deal with the risks facing the economy. The action was approved on an 8-1 vote.

Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.

“The world’s stock markets are in meltdown so the Fed came in with an inter-meeting move to try to stop the panic,” Christopher Rupkey, senior economist at Bank of Tokyo-Mitsubishi.

The Bush administration, which had announced on Friday that President Bush supported a $150 billion economic stimulus package, said Tuesday that it was not ruling out doing more than the $150 billion proposal if necessary.

Many analysts said if the carnage continues in stock markets, the Fed will move to cut rates again at its Jan. 29-30 meeting.

“This move is not an instant fix,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics. “The economy is still staring recession in the face, but at least the Fed now gets it.”

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‘Fed may keep cutting interest rates’

Western Mail
January 23, 2008

There could be more interest rate cuts to come as the US Federal Reserve tries to head off recession.

Howard Archer of Global Insight said the prospect of a US recession suggests the Fed may keep cutting rates.

Yesterday’s surprise decision to cut US rates by 0.75% helped rally London’s FTSE-100 index, after £76bn had been wiped off its value on Monday. The index of leading shares closed 161.9 up at 5740.1, a gain of 2.9% after Monday’s 5.5% fall.

The Fed’s cut to 3.50% was its first emergency move since 2001 and the largest single reduction since 1984.

Mr Archer of Global Insight said “The Fed did not directly reference Monday’s global stock-market meltdown in its announcement, merely noting that ‘broader financial market conditions have continued to deteriorate’. It focused upon the weakening outlook for growth.”

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US rates ‘heading for 2.5% by the spring’

The Scotsman
January 23, 2008

American interest rates are set to tumble as low as 2.5 per cent by early spring as US policymakers battle to restore stability to a faltering economy.

Economists said they expected the Federal Reserve to have shaved another full point off borrowing costs by its scheduled April meeting.

The prediction came after yesterday’s surprise three-quarter-point cut to 3.5 per cent – a move that appeared to have only limited success in restoring investor confidence.

Bonds jumped sharply, with two-year notes falling to their lowest in nearly four years, as investors prepared for still more rate- cutting.

In London, the benchmark FTSE 100 index of Britain’s biggest companies closed 161.9 points or nearly 3 per cent higher at 5,740.1 following a rollercoaster session and the previous day’s 323-point battering.

Nigel Gault, chief US economist at forecasting body Global Insight, said the prospect of “at least a mild US recession” suggested the Fed was “far from done cutting rates”.

He added: “We now expect the Fed to cut another cumulative 100 basis points off interest rates. The next instalment will probably come at the formal meeting on 30 January – another 25 or 50 basis points. We would expect to hit 2.5 per cent by the April meeting.”

Yesterday’s decision to slash interest rates came a week before the US central bank’s regularly scheduled meeting, a sign that it acknowledges that the global financial situation is serious.

David Jones, chief economist at DMJ Advisors, said the Fed could move again between meetings, should conditions deteriorate further, and predicted the Fed would lower interest rates to 3 per cent by the end of March.

Earlier this month, leading investment bank Merrill Lynch said the US economy was already in recession.

Some analysts pointed to a panic move by the Fed, which is headed by chairman Ben Bernanke. Michael Metz, chief investment strategist at Oppenheimer in New York, said: “Unfortunately the Fed] have no power to reverse what in my opinion is the worst post-war recession.”

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Oil Rises $99 Overnight, Settles to $97 a barrel

November 22, 2007, 10:03 am
Filed under: Credit Crisis, Credit Suisse, Dow, Economic Collapse, economic depression, Economy, Euro, Europe, foreclosures, freddie mac, gas prices, Great Depression, Greenback, housing market, Inflation, Oil, Petrol, S&P, Stock Market, subprime, subprime lending, US Economy, Yen

Stocks Fall as Oil Flirts With $100 a Barrel

NY Times
November 21, 2007

A late sell-off in the final minutes of trading sent stocks down sharply today, with the Dow Jones industrial average closing at its lowest level since April. The Standard & Poor’s 500-stock index, a broad measure of the equity market, fell into negative territory for the year.

The plunge came as investors remain frightened and uncertain about a credit crisis that does not show any signs of easing. Freddie Mac, considered a backstop for the mortgage industry, said yesterday that it lost $2 billion last quarter because of increased foreclosures tied to subprime mortgage defaults. Oil prices flirted with the symbolic $100-a-barrel level in overnight trading. Markets in Asia and Europe dropped sharply as investors questioned whether the United States economy will slow more than expected. And investors fled to the safety of relatively stable government bonds.

The Dow Jones industrials, off less than 100 points soon before 3 p.m., finished down 211.10 points, to 12,799.04, a 1.6 percent decline. It was the lowest close since April 19. The index fell even below the low ebb of trading during the summer’s credit crisis, when it finished at 12,845.78 on Aug. 16.

The S.& P. 500 index fell 22.93 points, also 1.6 percent, to 1,416.77, putting it down 0.11 percent for the year.

“This is an ugly week,” said James Paulsen, chief investment strategist at Wells Capital Management. Indeed: the Dow lost 2.9 percent of its value in the last three days alone.

Some market watchers suggested that lower trading levels during a holiday week make the market more volatile, but at least one analyst disputed that notion. “I don’t know of anyone taking a day off today,” said Dennis Davitt, who oversees equity derivative trading for Credit Suisse. “Not in these conditions.”

Crude oil futures briefly rose above $99 in overnight trading and an Energy Department report showed that inventories fell slightly last week, leaving investors wondering how soon oil will be nudged above its inflation-adjusted record of $102. Crude settled in New York trading at $97.29, down 74 cents.

The recent run-up in oil prices, which threaten to curb consumer spending, dovetails with a shaky economic outlook released by the Federal Reserve yesterday, which predicted a slowdown in growth over the coming months.

The overnight rout in foreign markets reflected a broad reaction to the Fed’s grim projections and a growing sense that the besieged housing market, which once helped American consumers buy the world’s products and services, has not hit bottom.

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Dollar hits new low versus euro

China View
November 22, 2007

NEW YORK, Nov. 21 (Xinhua) — The dollar dropped to new low against the euro for the second straight day Wednesday on worries about credit market losses and the health of the U.S. economy.

The U.S. currency also fell to a two-year low against the yen on Wednesday as investors sold higher-yielding assets financed by borrowing in Japan.

The dollar traded at 1.4858 dollars against the euro late Wednesday. It dropped to a record low of 1.4870 against the euro and 1.1016 versus the Swiss franc in earlier trading on speculation that the Federal Reserve will cut interest rates for a third time this year in December to prevent the economy from falling into a recession.

The dollar has declined 11.2 percent this year against the euro since the Federal Reserve began cutting rates in mid-September.

The dollar fell as low as 108.26 yen, the first time it has fell below 109 yen since June 2005, as global stocks weakened and oil prices surged toward 100 dollars a barrel. It stood at 108.63 yen in late trading.

Analysts said further sharp currency moves are likely in the near term, with U.S. markets closed on Thursday for the Thanksgiving holiday and trading likely to be thin on Friday.

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Gloom & Doom Economist Says Worst Is Yet to Come

October 26, 2007, 6:29 am
Filed under: Bank of America, catastrophic event, central bank, citibank, CNBC, credit card, Credit Crisis, DEBT, Dow, Economic Collapse, economic depression, Economy, Euro, Federal Reserve, gas prices, global economy, gold, Great Depression, Greenback, housing market, Inflation, Iran, jim rogers, liquidation, marc faber, Merrill Lynch, Nasdaq, Oil, Petrol, S&P, Stock Market, subprime, subprime lending, US Economy, Wall Street, Yen

Gloom & Doom Economist Says Worst Is Yet to Come

CNBC
October 22, 2007

Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, thinks the worst is yet to come for the global economy.

Appearing on CNBC’s “Squawk Box,” the economist and managing director of Marc Faber Ltd., explained his bearish outlook — and offered advice for how to play a glum market.

Faber perceives a “battlefield” between the Federal Reserve and other central banks, which had infused billions of dollars into the worldwide system to boost liquidity, and the counter-pressure of illiquidity brought about by market forces such as declining home prices.

Watch It:

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http://www.youtube.com/watch?v=YmORG10k71c

http://www.youtube.com/watch?v=VXsZu9oXCcg

But the economist fears that the Fed’s “throwing money at the system” will not help improve the fundamentals of the real economy. Instead, he believes, excessive monetary growth has merely driven excessive consumption in the U.S., with consumers living beyond their means and speculators “piling one bubble, housing, on top of the Nasdaq [tech] bubble” that popped in 2001-2001.

“The easy money, the easy credit — you can’t solve your problems with what caused them in the first place,” Faber declares.

He posits that a fully-realized recession at the turn of the millenium might have been for the best, restabilizing the world credit markets. “The longer you postpone the hour of truth, the worse it will be,” he augurs. “We will reach ‘zero hour,’ when more debt doesn’t help.”

How should one prepare for the full-fledged global bust Faber predicts?

Precious metals. He points to the traditional safe harbor, gold — but cautions that the precious metal is “a bit over-bought.” Construction-oriented commodities in general will continue to be driven by Chinese demand, he says, making mining companies a good bet. And he the one absolute essential: Food. “We all have to eat.”

Markets. As to national markets, Faber says that Japan and Thailand are “very reasonable.”

Currencies. He foresees the U.S. dollar remaining low against other currencies — but notes that “Euroland” is very expensive compared to the greenback.

Real estate. Faber’s outlook for real estate goes against the grain: Manhattan is the great exception to U.S. trends, continuing to rise in price even when strong U.S. regions show signs of decline. But Faber says that in the bigger perspective, New York property is as vulnerable to a credit bust as any major metropolitan areas, such as “Hong Kong, Zurich and Frankfurt.”

His real-estate advice: “Buy a farm and learn to drive a tractor.”

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Dollar lower vs euro and yen after Fed minutes

October 10, 2007, 11:28 am
Filed under: bernanke, central bank, China, Credit Crisis, Economic Collapse, economic depression, Economy, Euro, european union, Federal Reserve, George Bush, global economy, gold, Greenback, hedge fund, housing market, Inflation, interest rate cuts, Oil, S&P, Stock Market, subprime, US Economy, Yen

Dollar lower vs euro and yen after Fed minutes

MarketWatch
October 9, 2007

The dollar initially jumped against its major counterparts Tuesday after the release of minutes from the U.S. Federal Reserve’s last meeting, but quickly lost ground as investors realized the minutes didn’t remove the chances of another interest rate cut.

The greenback was also undermined by comments from a key Federal Reserve official that housing and credit markets remain fragile and won’t recover for some time, implying significant risks to the Fed’s forecast for a modest improvement in the economy.

“Recent events suggest that housing will remain weak for several more quarters,” said William Poole, president of the St. Louis Federal Reserve Bank, and a voting member of the Federal Open Market Committee this year.

With the economic outlook in the wake of the financial market turmoil highly uncertain, Fed officials agreed that a half a percentage point rate cut was “the most prudent course of action,” but said only that future actions would depend on how the economy fared in coming weeks, according to a summary of the Sept. 18 meeting.

“Since Sept. 18, the housing data have deteriorated significantly and while some credit spreads have narrowed, overall credit conditions and standards have not loosened materially,” noted economist Michael Gregory of BMO Capital Markets.

“The Fed could cut again on October 31 based on these developments alone, and we judge the data flow during the next 22 days will corroborate what’s on the ground now,” Gregory said.

Lower interest rates erode returns on dollar-denominated assets and therefore weigh on the dollar.

On Sept. 18, central bankers decided to cut U.S. interest rates by an unexpectedly large half percentage point. There was no opposition to the rate cut, the minutes showed.

Fed officials were so uncertain about the outlook that they refused to provide the traditional balance of risk statement, language that indicates to the market whether the Fed believes it must focus its policy attention on higher inflation or slower growth. Such a statement in mid-September “could give the mistaken impression that the FOMC was more certain about the economic outlook that was in fact the case,” the summary said.

The dollar index, which measures the greenback against a basket of major currencies, was at 78.450, after jumping up to 78.630 after the minutes were released. It was at 78.775 in late U.S. trading Monday.
The euro spiked up to $1.4103, after dropping to $1.4072 after the minutes. It was at $1.4043 late Monday.

The dollar was buying 117.17 compared with 116.94 yen before the minutes and 117.39 yen Monday.

EU focus on China

Investors were also studying the comments that emerged from the monthly meeting of European finance ministers, which concluded Tuesday in Luxembourg.

Rather than focus on the recently weak dollar, the meeting participants chose to zero in on the Chinese yuan. Though China no longer pegs the yuan to the dollar, it still trades in ranged bands against major currencies rather than float freely according to market rates.

“First point China, second point dollar, third point yen,” said Jean-Claude Juncker, chairman of the meeting, according to news reports.
Juncker, European Central Bank President Jean-Claude Trichet and European Economic Affairs Commissioner Joaquin Almunia will visit Beijing before the end of the year.

“We note that the euro is playing its role for an orderly reduction of the imbalances,” referring to China’s huge trade surplus, the euro zone statement said.

“EU Finance ministers have gotten little indication that the U.S. is willing to change its core view on [the dollar] and have directed their discomfort with the strong [euro] at China and the lack of movement” in the dollar-yuan pair, wrote David Watt, senior currency strategist at RBC Capital Markets.

Subprime crisis far from over

Reuters
October 09, 2007

The U.S. subprime housing crisis will not peak until 2009, rating agency Standard and Poor’s said on Tuesday, adding it had underestimated the extent of fraud in the industry.

S&P expected the world economy to grow 3.6 percent in 2007 and 3.5 percent in 2008, with emerging market economies driving growth. The U.S. economy would lag at 2 percent in both years, down from 2.9 percent in 2006.

Housing was the major weakness in the U.S. economy and the subprime crisis — which roiled global markets in late July and August — was far from over, although its shock value was wearing off, David Wyss, S&P’s chief economist, said in Mumbai.

“We underestimated the extent to which fraud was occurring in the industry,” he said.

“It looks, based on some surveys that had been done, the extent of frauds increased sharply in 2006.”

S&P said the U.S. Federal Reserve had estimated that subprime losses could reach $150 billion, and Wyss said that would feed through to unemployment and remain a brake on growth.

“We think in the United States the housing market is not going to bottom until winter. We think the losses in these sectors won’t really hit their peak until 2009,” Wyss said.

“We are not halfway through with this crisis yet.”

Emerging markets were far less vulnerable to credit market turmoil than during previous crises because of the capital flows attracted by high economic growth coupled with improved corporate governance standards, S&P said.

“World growth remains strong despite the weaknesses seen in the U.S. economy — especially in emerging markets because of healthy domestic demand conditions and export strength to non-U.S. markets,” it said in a report.

“The fact that the U.S. slowdown is concentrated in housing, which has relatively low import content, helps,” it said.

High commodity prices were also helping many emerging market economies, such as Latin American and African countries that are major exporters.

S&P estimated that, on a purchasing-power parity basis, the United States would contribute only 9 percent of world growth in 2007, compared with China’s 33 percent and India’s 12 percent.

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