I’m highlighting the story about the dollar/yen (see below) because this is another longer-term weight on the US dollar. This could be countered in the short term by what is going on in the markets. The word on the street is that Goldman Sachs has bought a ton of US dollar calls and has shorted US equities against its long-dollar position. Goldman tends to get what it wants, so we may see the dollar rally for a bit. But then Goldman will take profits and look elsewhere to manipulate the market.
Dollar Now Cheaper to Borrow Than Yen
The reversal may be more symbolic than a sign of a lasting change — currency analysts say the rates are so low and the gap so small that it is unlikely to cause investors to make a large shift in strategy. But it does indicate that investors believe U.S. interest rates could stay low for a prolonged period.
And it is yet another area of pressure for the U.S. dollar, which is already weighed down by the prospect of a decade of record budget deficits. The dollar is less attractive if yields on dollar-based assets are very low.
Fed Official: Real US Unemployment Rate is 16%
XX Sean’s note – Jesse links to a Breitbart story and throws in a good chart.
Here is a chart showing the ‘official’ U3 measure of unemployment and the U6 alternate measure. The chart also includes the unofficial unemployment rate projection done by John Williams of Shadowstats.com.
More Sun for Less: Solar Panels Drop in Price
The cost of solar panels has plunged lately, changing the economics for many homeowners. Mr. Hare ended up paying $77,000 for a large solar setup that he figures might have cost him $100,000 a year ago.
For solar shoppers these days, the price is right. Panel prices have fallen about 40 percent since the middle of last year, driven down partly by an increase in the supply of a crucial ingredient for panels, according to analysts at the investment bank Piper Jaffray.
U.S. Biofuel Boom Running on Empty
Two-thirds of U.S. biodiesel production capacity now sits unused, reports the National Biodiesel Board. Biodiesel, a crucial part of government efforts to develop alternative fuels for trucks and factories, has been hit hard by the recession and falling oil prices.
The global credit crisis, a glut of capacity, lower oil 
prices and delayed government rules changes on fuel mixes are threatening the viability of two of the three main biofuel sectors — biodiesel and next-generation fuels derived from feedstocks other than food. Ethanol, the largest biofuel sector, is also in financial trouble, although longstanding government support will likely protect it.
How Goldman Sachs’ Problems Are Hurting You
I’m deadly serious that investors shouldn’t risk any more of their money until there are promises of a thorough investigation of Goldman Sachs.
Bourbon Predicts Recovery in Oil Drilling, Production Maintenance in 2010 Bourbon SA, owner of the second biggest fleet of supply and crew ships for the oil industry, expects a recovery in drilling and production maintenance starting next year, the company’s chief executive officer said.
Related Posts
- Monday Chart Fiesta — US Dollar, Euro, Gold Versus Others (06/01/09)
- New Video and Dollar Chart (08/11/09)
- Saturday Reading — US Dollar, Unemployment and More (05/23/09)
- 3 Charts on the US Dollar and Precious Metals (08/24/09)
- Watch the US Dollar Rally (08/10/09)
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