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Tuesday, 01/13/2009 10:52:36 AM

Tuesday, January 13, 2009 10:52:36 AM

Post# of 111453
the federal reserve's purge of the economy continues to show benefits . i have been completely amazed at the strength of this economy and the absolute power of the federal reserve(worldly). about a month ago..i chimed in here about the negative t-bill rates(beginning of buy signal):

Treasury Bills Trade at Negative Rates as Haven Demand Surges
By Daniel Kruger and Cordell Eddings

Dec. 9 (Bloomberg) -- Treasuries rose, pushing rates on the three-month bill negative for the first time, as investors gravitate toward the safety of U.S. government debt amid the worst financial crisis since the Great Depression.

The Treasury sold $27 billion of three-month bills yesterday at a discount rate of 0.005 percent, the lowest since it starting auctioning the securities in 1929. The U.S. also sold $30 billion of four-week bills today at zero percent for the first time since it began selling the debt in 2001.
http://www.bloomberg.com/apps/news?pid=20601087&refer=worldwide&sid=aOGXsWKEI6F4

.....now the latest..:

Nov. trade deficit drops to lowest level since '03
Trade deficit in Nov. plunges to lowest level in 5 years as oil imports drop by record amount

WASHINGTON (AP) -- The trade deficit plunged to the lowest level in five years in November as a deepening recession slashed demand for oil by a record amount. Imports from China also fell by the largest amount on record.
http://finance.yahoo.com/news/Nov-trade-deficit-drops-to-apf-14045576.html

from that..a few highlights:

"The U.S. recorded a small surplus of $800 million with the countries of South and Central America, the first surplus with this region since April 1999." ... (think of venezuela..lol)

"The politically sensitive deficit with China shrank by 17.5 percent to $23.1 billion in November, the smallest imbalance since June"

"The deficit with the European Union fell by 41.7 percent to $5.6 billion, while the imbalance with Mexico dropped by 26.8 percent to $3.5 billion."

"For November, the deficit with Canada, America's biggest trading partner, shrank to $3.3 billion, a drop of 43 percent and the smallest imbalance in six years."

...and now a simple chart showing a couple of results from the federal reserve purge..the effect on dollar..and oil:







...it was almost a year ago that i was pounding my chest at how strong the economy was...and was so bullish for 2009(haven't changed on that)---in no way did i ever think that the fed reserve would purge the system as much as they did...put other nations at our demand....wow. one big scary monster coming our way.....and it is going to be the mother of all runs...market...and beyond!

ps...question being...how much longer

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