Quick Overview

The dollar may get another short-lived respite but it is heading inexorably down. The question is how much it takes with it
So far, the foreigners—mainly Asians plus a few outliers, including Russia and Brazil—have obliged, permitting America to scoop up 75% of the world's surplus savings. Together, Asian central banks have accumulated about $2.5 trillion in foreign-exchange reserves, up almost a quarter in little more than a year, most of it in dollars; Japan and China alone have reserves of nearly $1.5 trillion between them.....There are repeated suggestions that regional payments systems should be set up, such as the gold dinar standard proposed for the Islamic world in 2002 by Malaysia’s prime minister.

The U.S. Department of Energy said that:
Crude supplies were up 2.6 million barrels last week to 305.2 million barrels.
Unleaded supplies were down 2.9 million barrels
Heating oil supplies were down 2.4 million barrels.

OPEC agreed to increase the official quota from 27.0 to 27.5 million barrels per day. Another 500,000 barrels of production may be authorized later - if OPEC's president sees the need for it.

General Motors expects to show a loss in the first quarter, hurt by weaker than expected sales in North America.

Canadian cattlemen have taken their complaints to NAFTA, hoping to get the U.S. to open its border.


U.S. Trade Deficit Hits All-Time High of $665.9 Billion in 2004, Commerce Dept. Reports
..private economists are worried that the huge level of resources being transferred into the hands of foreigners will eventually result in lower U.S. living standards.

China's slowdown continues to challenge normal definitions. Fixed asset investment surged 24.5 per cent in the first two months of the year - 8.5 percentage points higher than Beijing's 2005 target - while industrial production hit a nine month high. But Washington's hopes that Beijing will curb growth through currency appreciation, thereby reducing the US trade deficit, look more misplaced than ever.

U.S. industrial production was up 0.3% in February.

U.S. housing starts were at an annual rate of 2.195 million in February, up .5% from January's pace. 2005 housing starts are up 15% from a year ago.