With Fed mouthpiece Jon Hilsenrath warning - in no lesser status-quo narrative-deliverer than The Wall Street Journal - that The ECB's actions (and pre-emptive collapse in the EUR) means the U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad, potentially slowing both U.S. growth and inflation; and Treasury Secretary Lew coming out his crypt to mention "unfair FX moves," it appears The Fed (and powers that be) are worrying about King Dollar. This suggests, as Mises Canada's Patrick Barron predicts, the Fed will start charging negative interest rates on bank reserve accounts as the final tool in the war on savings and wealth
t. With further dollar strength, internationally-exposed US companies will also face headwinds. First, they face the translation impact of lower revenues coming from outside the US. Secondly, it makes US companies less competitive. Thirdly there can be a transactional impact (margin squeeze) where there is a mismatch between a dollar cost base and international revenues. Lastly, where there is an asset-liability mismatch, such as US dollar debt matched against cash or revenues in a foreign currency. This last phenomenon is going to be more common this cycle for US companies which have taken on dollar debt with cash trapped offshore due to repatriation taxes. Amazing as it is, the marke
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Chevron Corp.'s decision to cut 162 jobs from its Appalachian natural gas exploration unit in Moon represents the first major layoffs to hit Marcellus shale operations since prices began falling last year.
The layoffs will affect up to 23 percent of the 700 people working for the company in Pennsylvania, where it expects to curtail drilling activity. The layoffs include office and field workers and happen as several major gas producers downsized capital spending plans in the Marcellus and Utica shales because of a 35 percent drop in prices since November.
Layoffs in Iowa and Illinois
Fortune cookie say we own the United States
As of September 2014 the largest single holder of U.S. government debt was China, with 21% of all foreign-held U.S. Treasury securities (10% of total U.S. public debt). China's holdings of government debt, as a percentage of all foreign-held government debt are up significantly since 2000 (when China held just 6 percent of all foreign-held U.S. Treasury securities
Pretty soon we will become a colony of China. We will never ever be able to pay them back
lets blame one country for all of Americas corporate woes this quarter
Euro becoming worthless
Can't pay my bills on time with those gasoline savings
I thought i had more money for bills. What happened
Guess thosr gasoline savings not helping
Fed knows best
Credit Suisse knows best