Currencies & Gold move together!  Fed downgrades economic growth…  More on China…  Yen breaks the trading pattern… And Now… Today’s Pfennig!

I have studied inflation’s effect on economies and consider myself an expert on the subject. I have written extensively on the subject and have given speeches on how people can protect themselves from the coming boom in inflation. Recently, on eBay I purchased a bunch of authentic 100 trillion dollar bank notes from Zimbabwe for a few dollars each.

China calls dollar into question… why the red nation wants a new “international reserve currency”… Stocks boom… what happened the last time the Dow jumped 18% in 10 days…A smart way to solve the housing crisis… that will never survive Washington… Plus, signs of the times: UAE buys chunk of Mercedes-Benz, and a quiet change at AIG

Demand is way down for iron ore and the negotiated price between China and its major suppliers is due for a big hit. Last year the price almost doubled. This year could see prices almost cut in half.

Perhaps the biggest reason the stock market is a leading indicator of where the economy is headed is what’s called the “wealth effect.”  It goes something like this… When our portfolios are headed higher, we usually go out and spend like the dickens.  After all, with nice fat investments we feel like we have a lot more money to spend.  And, as well all know, spending drives the economy.  Result:  Stock prices and the economy get a boost.

ECB to change dollar’s direction?… BOE leaves rates unchanged… The worst is not over in US housing… Japan’s government signals expansion is over.. And Now… Today’s Pfennig!

In the currency market, the dollar sagged a bit against the euro. Late Friday, the euro was trading at $1.5549 vs. $1.5501 on Thursday.

Behold the cellphone. Or, as it’s known in most other parts of the world, the mobile phone. The mobile phone is a kind of hallmark for growth and change in the 21st century.