Skip to main content

Global Economy: US dollar rises amid fears of global slowdown

Pound took a massive beating as US dollar rose to a 37 year high. Global economy is facing a typical "ceiling effect".



Quoting FT's technical analysis:

With UK rates set to decline and US rates possibly rising, sterling only has further to fall. If the pound fails to stop its descent at $1.80, its drop could easily extend to $1.70.

Then there are fundamentals, those elusive forces that are supposed to guide long-term currency values. The key metric here is purchasing power parity. This is the idea that, after adjusting for exchange rates, an identical good will cost the same wherever you are. Here the prognosis is even more gloomy. Take the Big Mac, a yardstick of fair value popularised by the Economist magazine. Even after taking into account sterling’s recent fall, a burger still costs $3.57 in Chicago against $4.26 in London. To bring those prices into balance, sterling needs to fall to $1.56.


It is not far that ECB will be forced to cut the rates sooner than expected.

Comments

Popular posts from this blog

Security: VMware Workstation 6 vulnerability

vulnerable software: VMware Workstation 6.0 for Windows, possible some other VMware products as well type of vulnerability: DoS, potential privilege escalation I found a vulnerability in VMware Workstation 6.0 which allows an unprivileged user in the host OS to crash the system and potentially run arbitrary code with kernel privileges. The issue is in the vmstor-60 driver, which is supposed to mount VMware images within the host OS. When sending the IOCTL code FsSetVoleInformation with subcode FsSetFileInformation with a large buffer and underreporting its size to at max 1024 bytes, it will underrun and potentially execute arbitrary code. Security focus

OS Virtualization comparison: Parallels' Virtuozzo vs the rest

Virtuozzo's main differentiators versus hypervisors center on overhead, virtualization flexibility, administration and cost. Virtuozzo requires significantly less overhead than hypervisor solutions, generally in the range of 1% to 5% compared with 7% to 25% for most hypervisors, leaving more of the system available to run user workloads. Customers can also virtualize a wider range of applications using Virtuozzo, including transactional databases, which often suffer from performance problems when used with hypervisors. On the administration side, customers need to manage, maintain and secure just a single OS instance, while the hypervisor model requires customers to manage many OS instances. Of course, the hypervisor vendors have worked hard to automate much of this process, but it still requires more effort to manage and maintain multiple operating systems than a single instance. Finally, OS virtualization with Virtuozzo has a lower list price than the leading hypervisor for comme...