Archive for December 2011
A Good Forex Currency Trading System – Trade These Economic Indicators
It seems everyone is looking for a good forex currency trading system. Well before jumping into the big time it is important to lay a foundation. Before we get into currency trading system let’s start with looking at what drives the currency market. Let’s look at a list of economic indicators. It may not be fun but I can assure you that a good working knowledge of these indicators (used in the USA) will help you in the long run and allow you to fully utilize your forex currency trading system to the fullest potential.
It is important to remember that the numbers are not as important as the anticipation of these numbers, this drives the market. When you learn how to use these indicators you will also improve your currency trading system.
Let’s take a look at a few of these with a brief explanation. This is part one of an ongoing series
CCI – Consumer Confidence Index
The Conference Board; Last Tuesday of each month, 10:00am EST, covers current month’s data. The CCI is a survey based on a sample of 5,000 U.S. households and is considered one of the most accurate indicators of confidence. The idea behind consumer confidence is that when the economy warrants more jobs, increased wages, and lower interest rates, it increases our confidence and spending power. The respondents answer questions about their income, the market condition as they see it, and the chances to see increase in their income. Confidence is looked at closely by the Federal Reserve when determining interest rates. It is considered to be a big market mover as private consumption is two thirds of the American economy. If you are looking for an effective forex currency trading system, then using this report can make it even better.
CPI – Consumer Price Index; Core-CPI
Bureau of Labor and Statistics; Around the 20th of each month, 8:30am EST, covers previous month’s data.
The CPI is considered the most widely used measure of inflation and is regarded as an indicator of the effectiveness of government policy. The CPI is a basket of consumer goods (and services) tracked from month to month (excluding taxes). The CPI is one of the most followed economic indicators and considered to be a very big market mover. A rising CPI indicates inflation. The Core-CPI (CPI, excluding food and energy, expense items which are subject to seasonal fluctuations) gives a more stringent measure of general prices.
In the next article we will look at the following economic indicators: Employment Report, Employment Situation Report, and the FOMC Meeting (Federal Open Market Committee): Rate announcement.
If you really want to improve your trading then be sure to click on the link below, you will be glad you did. Good luck trading.
Economic Crisis – Solution From the Middle Class
When tough times befall us, it’s usually the common man’s place to right the wrongs that have been dealt to him. In other words, the middle class must pay the blunt of the mistakes, made financially, by the well-to-do and greedy class.
The bottom-line in this current financial melt-down or recession is how are we going to fix the greed in this country, in order to give back the right to the middle-class, to operate a family’s budget that allows for an occasional ice cream treat or a trip to the amusement park?
The answer lies in the middle of the greedy pile of decisions to squeeze out the middle class from keeping their heads above financial drowning back in the mid 1980′s.
As long as the rich were amassing fortunes from this tax and that oversight, the middle class were able to weed their way through the economy by seeking some relief through the tax breaks that were available. Once the rich saw a way to pinch off the tax breaks, in order to further separate the wealthy from the middle class, did the recession train of the 21st century begin to pick up steam and derail the entire American economy through their own greed.
To better explain this unwise decision to end a plausible means of dealing with the tax hungry legislators, The Reform Act of 1986 was a 829-page bill during President Reagan’s reign of financial economics that was enacted that put an end to allowing the middle class to write-off their interest paid on credit cards and car loans, what the law termed as ‘consumer loans.’ from their income taxes.
This tax code change was designed to step down, in increments, the ability to use the tax write-offs that helped the middle class to keep up with their overwhelming taxes. By design, it was to curb spending and thus maintain a more stable economy. Oh, did I point out it did nothing to stop the greed of the wealthy from continuing to gouge the middle class, including credit card companies and their interest rate greed?
In order to once again, allow the middle class to right the economy, it’s imperative to re-instate the ability to let consumer loan interest to be tax deductible. If allowed, the immediate relief will be felt, financially, to the middle class, and to further restore the economy, the lawmakers must enact a bill to crimp the abilities of the wealthy, which includes creditors, banks, and mortgage lenders from making any attempts to raise interest rates that would undermine that balance to the economy.
In hindsight, the lawmakers were trying to use the middle class to regulate the rich, when it reality it should have been the other way around. Aside from the hedge fund greedy and the fuel gouging prices, the American consumers have managed their wallets better than the wealthy have managed their greed. Given the time span of when The Reform Act of 1986 was passed into law, and the current condition of the economy, the middle class were able to survive until the wealthy had created ivory towers that were oblivious to what it takes to live above their own means.
If you agree with the viewpoint of this article, I would ask you to share this opinion with as many other people as possible. Waiting for the wealthy to fix what they didn’t know how to stop in the first place, will only defer the repairs needed to get our economy back on track for the long run. The current administration is trying to get the train back on track, but to stoke the engine for the long haul, we need to know that we can offset the costs for the middle class or the demise of our economy will continue versus recover.
Raising Taxes is Bad Economic Policy; It is Bad for Our Nation
Recently, I watched the debate on television regarding the Bush administration’s tax cuts and some Democrats were saying that they did not want to extend those tax cuts into the future. But isn’t that really simply saying we want to raise your taxes? Personally, I don’t want my taxes raised and I do not want any more taxes on my small business.
Small businesses work very hard to employ Americans and tax incentives to buy more equipment for their businesses means that;
Someone Will Have To Make That Equipment Someone Will Have To Run That Equipment People Running That Equipment Will Pay into the System Taxes The Business Will Be Able to Expand and Buy More More Business Means More Tax Revenue
I find it very difficult to understand the Democrat argument that raising taxes will help our economy? In fact I find the argument so appalling I have to ask a serious question; are these Democrat politicians on drugs? Why do you want to raise taxes? So you can have more pet projects and blow money on more social programs to people who don’t wanna work?
Raising taxes means that people will have less money to spend to maintain their quality of life in the standard of living. Raising taxes means small businesses will not have the money to invest to grow their businesses and employ more people. Raising taxes is Voodoo Economics 101. Raising taxes is about the stupidest thing I’ve ever heard in my entire life on what is best to do for my country.