Not surprisingly, the more detailed Boehner proposal presented to the White House was rejected and the game goes on. Imagine what our Founding Fathers would think of this process after they created a document with specific enumerated powers.
I digress to monetary policy where the Reserve Bank of Australia cut interest rates by 25 bps to 3% as expected. Their benchmark rate is back to the lows of April thru Sept ’09. The key difference between the RBA and other central banks though is their desire to keep REAL interest rates positive as they have for at least the last 20 years. In their release they said “Global growth is forecast to be a little below average for a time. Risks to the outlook are still seen to be on the downside…” Notwithstanding the cut, the Aussie$ is matching the highest level vs the US$ since mid Sept. The euro heavy Dollar index itself is at a 6 week low.
In the ‘other’ category, the Shanghai index rallied off the lowest level since Jan ’09 by .8% and euro zone PPI rose 2.6% y/o/y vs 2.7% in Sept and compares with the 2.5% that was expected. Data wise in the US, today is the quiet before the important jobs data over the next 3 days and the ISM services index.