Daily Digest 2/6 - Currency War Has Started, Huge Increase In Homeless Students
The Congressional Budget Office analysis says the government will run a $845 billion deficit this year, a modest improvement compared to last year's $1.1 trillion shortfall, but still enough red ink to require the government to borrow 24 cents of every dollar it spends.
Chinese authorities have responded to the dramatic fall in the Japanese yen and other Asian currencies in recent weeks by tightening their grip on the yuan and beating back market pressure for the Chinese currency to appreciate
Japan is the latest country to say enough is enough. Having seen its currency appreciate dramatically in recent years, Prime Minister Shinzo Abe's new government is taking steps to alter the exchange-rate dynamic, and is succeeding.
In just over two months, the yen has weakened by more than 10 per cent against the dollar and close to 20 per cent against the euro.
Currency wars have been a staple of modern finance ever since the collapse of the Bretton Woods system of fixed exchange rates in the early 1970s. As Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co., says: "Most governments believe that their currencies are too important to be left to the markets." So policy makers have often tried to manipulate the value of their currencies by intervening in the markets.
President Barack Obama urged Congress to pass a small package of spending cuts and tax overhauls to delay the automatic spending cuts set to kick in next month, saying thousands of jobs and the nation's economic recovery hang in the balance.
"There is no reason that the jobs of thousands of Americans...not to mention the growth of the entire economy, should be put in jeopardy just because folks in Washington couldn't come together," Mr. Obama said.
Del. Robert G. Marshall (R-Prince William) has been fighting for the bill for three years as a safeguard against what he believes is a central banking system that has swung out of control. But until Monday, the plan seemed little more than a quixotic quest. The House voted 65 to 32 to approve the measure.
The EIA said the average U.S. household expenditure for gasoline rose by nearly 10% last year to $2,912. That was nearly 4% of income before taxes, according to EIA estimates, tying the 2008 level as the highest in a decade.
"The effect of the higher prices in 2011 and 2012 outweighed the effect of reduced consumption," the EIA said. The jump of more than 26% in 2011 gasoline prices was six times greater than the 3.4% rise in nominal household income, with the more modest gain of around 3% in 2012 prices outpaced the 2.9% estimated increase in income, the EIA said.
New numbers indicate student homelessness is up nearly 50-percent over the last five years in Washington.
The office of the Superintendent of Public Instruction recently released data showing that more than 27,000 students in our state were homeless last school year.
Officials attribute the huge increase to improved school district reporting, job losses in our area brought on by a decline in the logging industry, as well as the overall flat economy.
THE number of people registered as unemployed in Spain is bordering on five million as the country remains mired in recession. Labour Ministry figures released yesterday show that the registered jobless figure surged by 132,055 in January to 4.98 million.
The jobless rate was at 26pc at the end of the fourth quarter, up 1pc from the previous three-month period
The most populous country in the Arab world is on the verge of a liquidity crisis, with street violence and political instability keeping away tourists and foreign investors two years after the country's revolution.
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