Friday, November 06, 2009


clipped from
The unhappy situation in America, of which we have long warned, should be
contrasted with the healthy growth experiences of other countries such as
Australia, New Zealand, China and India.

The Australian central bank is now so confident in its growth potential that it
has raised interest rates two months in a row. Though they have a center-left
government, the Aussies have managed to control stimulus spending and overall

New Zealand is seeing an increase in real wages amid a strong Kiwi dollar. Much
more than GDP, this is a signal that economic growth is truly returning to this
island nation.

China, a place where 9% annual GDP growth is considered a recession, is still
developing its market economy while Obama cripples that of the United States.

A currency's value reflects investors' faith in a particular nation. Though
commentators are seizing on this figure or that to make the bull case, the
dollar index belies their claims.