Saudi plans spending cuts, reforms to shrink budget deficit

CLAPTON

DiggerUK wrote: »

Rate rise, strong dollar, dollar peg. Makes a strange christmas cracker conundrum.

And let's not forget, most of the worlds (cheap) oil producers have their currencies pegged to the greenback.....oh, I forgot, Russia doesn't.

Perhaps the US Federal Reserve may have been playing a political game with the recent rate rise.......no of course not, they are just like the Bank of England, independent of politics..._

I don't understand your point
The Fed works in the best interest of the US government.

Whether other countries peg their products to the dollar is their own decision.

Thrugelmir

DiggerUK wrote: »

Perhaps the US Federal Reserve may have been playing a political game with the recent rate rise.......no of course not, they are just like the Bank of England, independent of politics..._

The Fed's responsibility is to the US no one else.

DiggerUK

CLAPTON wrote: »

I don't understand your point
The Fed works in the best interest of the US government. Whether other countries peg their products to the dollar is their own decision.

I'm suggesting that the Feds rate rise decision was not made purely in pursuit of economic goals.
It still beggars belief why they raised rates in the absence of price inflation, the traditional reason justifying a rise.

That fed decision was not made in a vacuum that ignores politics. Her ability to take a decision outside of purely economic criteria is why Yellen would have been appointed in the first place.

The US will not give up their position as international top dog without a fight to protect their supremacy on the world stage. Even if it means knifing their friends in the house of Saud in the back..._

Generali

DiggerUK wrote: »

I'm suggesting that the Feds rate rise decision was not made purely in pursuit of economic goals.
It still beggars belief why they raised rates in the absence of price inflation, the traditional reason justifying a rise.

That fed decision was not made in a vacuum that ignores politics. Her ability to take a decision outside of purely economic criteria is why Yellen would have been appointed in the first place.

The US will not give up their position as international top dog without a fight to protect their supremacy on the world stage. Even if it means knifing their friends in the house of Saud in the back..._

It's because it takes about 18 months for a rate rise to feed through into the real economy. If you increase rates once inflation has a hold it's hard to put that genie back in the bottle.

CLAPTON

DiggerUK wrote: »

I'm suggesting that the Feds rate rise decision was not made purely in pursuit of economic goals.
It still beggars belief why they raised rates in the absence of price inflation, the traditional reason justifying a rise.

That fed decision was not made in a vacuum that ignores politics. Her ability to take a decision outside of purely economic criteria is why Yellen would have been appointed in the first place.

The US will not give up their position as international top dog without a fight to protect their supremacy on the world stage. Even if it means knifing their friends in the house of Saud in the back..._

Of course they make decisions in the interest of the US government.
Is there a government agency anywhere in the world that doesn't act on behalf our their masters?

Are you upset on behalf of the House of Saud or are you concerned about the admirable Russian Empire?

DiggerUK

Generali wrote: »

It's because it takes about 18 months for a rate rise to feed through into the real economy. If you increase rates once inflation has a hold it's hard to put that genie back in the bottle.

There is more to the rate rise than taking a guess that inflation is going to rise. Since when has it become fashionable to fix the roof before it rains.

It also makes US exports more expensive, and encourages imports. How does that help a fragile recovery.
Let's not ignore the recent decision to allow US exports of crude oil.

Little of what is coming from the US at the moment passes any smell test..._

DiggerUK

CLAPTON wrote: »

.......Are you upset on behalf of the House of Saud or are you concerned about the admirable Russian Empire?

Aren't they on everyone's christmas card list?
..._

Mistermeaner

DiggerUK wrote: »

There is more to the rate rise than taking a guess that inflation is going to rise. Since when has it become fashionable to fix the roof before it rains.

It also makes US exports more expensive, and encourages imports. How does that help a fragile recovery.
Let's not ignore the recent decision to allow US exports of crude oil.

Little of what is coming from the US at the moment passes any smell test..._

I'm puzzled. The US does what the US believes to be in the US best interest.

What smell test doesn't that pass.

Rather than ranting like a paranoid delusional why not just explain what you think the US is up to.

Other than raising interest rates.

Generali

DiggerUK wrote: »

There is more to the rate rise than taking a guess that inflation is going to rise. Since when has it become fashionable to fix the roof before it rains.

It also makes US exports more expensive, and encourages imports. How does that help a fragile recovery.
Let's not ignore the recent decision to allow US exports of crude oil.

Little of what is coming from the US at the moment passes any smell test..._

What's the forumnomics conspiracy theory about this then? My take on things is that the crisis is over or at least it's the beginning of the end.

globalds

Generali wrote: »

What's the forumnomics conspiracy theory about this then? My take on things is that the crisis is over or at least it's the beginning of the end.

OK ..

Perhaps Russia has decided that it's choice will be the one that can survive a dunking

http://marketrealist.com/2015/12/russian-crude-oil-production-roof/