The American dollar isn’t nearly as strong as it used to be, according to news that came about this week. Because the United States economy doesn’t look particularly promising at the moment, the dollar fell to a brand new low last week. This news, coupled with the fact that oil prices hit their highest points ever, leaves many economists in the United States with many new worries about the economy.

Among the problems with the US economy are the strangely low earnings from Bank of America, the continually slumping labor market, and the already slumping housing numbers. In addition to that, the Federal Reserve released a report on the economy that was anything but promising.
There has been a ton of pressure added to the credit market in recent weeks, as US banks might be looking at liquidation of their securities in the near future. This news also sparked the increased buying of US Treasury bills, which have long been a safe option for investors. This upswing shows that investors are concerned about the market’s direction and want to play it safe during this time.

Tom di Galoma, a chief executive with Jeffries & Co. had this to say in an interview with Yahoo News. “There are concerns about another rout in the credit market. Housing will be a drag on the economy for the next 12 to 18 months.”
There is also speculation among market veterans that another cut in the federal interest rate is coming either this month or the next. Most felt that the Fed would take action before December.

The government bond market also saw the yield on their three-month Treasury bill slip. The bill dropped 23bp to end up at 3.76%. This marked a three-week low. Other Treasury bonds also saw their stock drop in recent weeks, as the market has taken a hit.
The situation isn’t much better in Europe, where the ten year Bund fell by 4.32%. Over in Asia, the ten year Japanese government bond dropped a remarkable 1.64%, which is just one hundredth of a percentage point above the bond’s month low.
Over in the currency markets, the dollar has also seen a drop. It met a record low when compared to a number of different currencies in the last week. The Euro, on the other hand, made a record high number of $1.43 when compared to the dollar. Speculation has it that potential Fed interest rate cuts have played a role in effecting the situation.

Though there are certainly concerns over what to do about the dollar’s sinking value, all signs point to the federal government staying put at this point. All of the reasons for the dollar’s decline seem to be things that will sort themselves out if they are given the chance. Slumping housing numbers and low rate expectations are contributing factors that should eventually cool down as the value of the dollar increases.
As far as metals go, sterling saw a rise in its value this week. It hit a three-month high against the value of the dollar. This came as a result of above average retail sales data in the United Kingdom, where the economy seems to be heading in the opposite direction.
One of the primary concerns for the US economy comes as a result of the rising costs of US crude oil. With tensions in the Middle East continuing to grow, the price of a barrel of oil rose to nearly $90. This is an all-time high that doesn’t seem likely to come down anytime soon. Platinum and gold also look like they are headed into uncharted, record territory.

Unless you�ve been living in a cave for the past few years, you�ve probably noticed a huge increase in the interest in poker and in particular, Texas Holdem poker. This boom has occurred online with sites like party poker, on TV with the World Poker Tour and of course the first name in poker: The World Series of poker. The 2005 World Series, was the largest poker event in history. The No Limit Hold�em Final had 5619 entries that generated over $52 million in prize money and $5.2 million in fees and untold publicity to Harrahs. Joseph Hachem, was the winner of $7.5 million grand prize. Overall 45 world series events from June 2nd to July 13th generated roughly $100 million in prize money.

Even more impressive than than the boom in casino poker, is the huge size of the online poker market. It is expected to generate over $3 billion in revenues. At any moment of time, 10�s of thousands of people, mainly males, from all parts of the worlds at rooms including Party Poker, Poker Stars, and others. What�s even more interesting is that most of the money, upto 80% comes from US players; while the US Attorney General (and most state counterparts) have declared online gambling illegal. Unlike casino games or bingo, Poker is considered a game of skill in many state. But we�re not hear to talk about poker or it�s legality, so if you want more on poker and online poker in particular, i found this site helpful All Poker Rooms. In particular you might want to read The rules of Texas Holdem or if you�re like me, and can�t ever remember whether flush beats straights, check out Winning Poker Hands, if you are unfamiliar with the game of Texas Holdem.

Now, that you�ve got the big picture, the real question becomes, what is the impact of poker or more generally gambling on an economy. It was years ago that i heard one TV talking heads, labeled the US culture �the casino economy�. I don�t think their entire theory was exponded in the sound bite, but for me, it was a great description of the stock market/Internet hype bubble that popped in 2000 and the executives that scammed shareholders of Worldcom, Enron, Tyco and many others, steal the jackpot for themselves. This casino mentality has transferred to the current, now slowing, real estate boom. The US culture and economy has become a world of nods and winks, were thieves steel by falsifing info, lying on appraisals and wild conflicts of interest around every corner. While this may not be unique to the USA, it was �The Story� in the US, after the �Internet Bubble� and before the most recent story �Outsourcing�.

In particular, what is the effect of offshore operators, attracting players that might otherwise play locally at state licensed and taxed casinos? Just using the figures (i got them from Marketing Sherpa) the figures i quoted earlier, the online gambling industry is generating $8 billion to $10 billion in revenues each year. Probably drawing away US gamblers who might otherwise play at casinos that pay local taxes. Let�s assume that at least $2 Billion to $3 Billion would have paid taxes in the country where the player live. That�s $10 for every american. Given that the online industry, employs people offshore, it�s really the equivalent of outsource our gambling to lower cost offshore providers. This year alone, rapidly growing India will supply nearly $20 Billion of services for a number countries in wealthier/industrialized world.

I guess my point is that market forces generate an advantage in �Offshoring�, whether it be outsourced-offshore IT services or offshore gambling, because the offshore operator has some combination of cost or regulatory advantage. For IT and Accounting services their advantage is nearly all based on price. Online gambling benefits from both the regulatory advantages of being offshore and the cost advantage being virtual. It is this cost advantage ( being VIRTUAL ) that Las Vegas and the US Indians cannot overcome, without a change in the political climae. While most US business being outsourced is being outsourced based soley on wage differencial, online gambling is being �outsourced� offshore, because the US government refused to allow online gaming or even to allow each state to make it�s choice.

Is there anything wrong with gaming going online or offshore? I�m not really seeking to identify right and wrong, but the same governments that have refused to allow licensed online gambling also lose tax revenues to Offshore/Online operators, every day. So as US gamblers send their money offshore, states lose millions a day in taxes while the US gambling industry loses even more revenue and customers. The best way to stem the tide of online gambling taking money offshore is to all US based/regulated gaming online (each state should decide) and US operators compete with there trusted brands against the offshore operators.

The talk of the world�s economy for the past year has been focused in one area, Asia. Both US investors and European investors have been investing heavily in the Asian markets for the past year, but is this trend going to hold strong? I don�t believe so. With rising energy prices worldwide and rates on the increase many small time investors are beginning to back out of the Asian market.

Comparing the Asian markets to the Dow Jones is embarrassing. In the past year the Dow Jones has dropped nearly 3%. When looking at major Asian markets we see trends of 14-39% increases for the year, being commanded by the Korea Stock Exchange with a 38.7% increase. To further the recent success of Asian markets, the Japanese Nikkei Stock Average reached a 4 year high and has risen nearly 20% this year.

All of this sounds very good, until we look at why these jumps have been occurring. All the gains in the market have come as energy prices have jumped which can lead to inflation and cause many investors to speculate as to whether or not these markets are accurately reflecting the strength of Asia�s economies (think .com boom in �99).

The chief economist of The Asian Development Bank was quoted saying ��economic growth could slow further than previously expected.� In addition, The International Monetary Fund cautioned that the risks ahead are �increasingly slanted to the downside.�

Although the downfall of the Asian markets has been a hot topic recently, and many analysts are predicting a downfall in the near future, many foreign investors are not flinching. US investors are still leading the way, pouring billions of dollars into the foreign Asian markets, for two consecutive months now US investors have raised their net investments in these economies. European investors on the other hand have scaled back, but only slightly.

No one can tell for sure what is to come of the booming Asian markets, but many can be skeptical of it. As hundreds of thousands of investors pour billions of more dollars into those Asian economies I see more and more of a resemblance to the overvalued, over saturated and over rated stocks of the .com boom in the late 90�s.

The economic growth in both India and China has been exploding over the past half a decade. Nearly 3 millions jobs in the manufacturing area in the United States have been lost to these two countries. Now one must ask, how will this affect our economy and our growth? Is this a good thing or a bad thing?

There is both an upside and a downside to the explosive economic growth in India and China. On the upside the American market has been and will continue to be flooded with inexpensive, quality goods and products which the average American consumer can afford and use. In addition to this those involved in U.S. export sectors will also benefit greatly in that it is expected China and India will be looking for �Western-style� goods and services as more money and wealth is pumped into their system. These goods and services include cosmetics, jet liners and banking/financial and investment services.

Now looking at the downside, its obvious how hard times can get if America doesn�t wake up and get back in the game. Those workers in the U.S. who are less skilled, which is the majority of workers it seems, are being put out of work and left with no options for income. Additionally even the more skilled workers in the U.S. including computer programmers and some financial analysts are having a hard time as well. The giant corporations of Asia are not stupid, and they see where the money is. Because they can offer labor and services at a cheaper rate than is available in the U.S. they are targeting the American market, putting thousands out of jobs.

The agricultural industry in America has been possibly the largest gainer from these recent economic changes. Because of China�s and India�s growth and move to a more industrial/technology related market, their demand for food products and produce has increased. Agricultural exports to China tripled between 2000 and 2004 and exports to India are also up. The owner and founder of Farmers International commented on Asian growth and had this to say: �This market is going to grow further because of the rising purchasing power in Asia.�

As mentioned before, it is only a matter of time before growing Asian countries start demanding goods from the U.S. and shift from an almost entirely export market to a mix of imports and exports. As China�s economy grows and wealth increases, there will be more of a demand for environmental care, health care and housing. These are all services which America is prepared to offer.

As of this point in time it is hard to tell what the future has in store for these 3 countries. All that can be done is sit back and wait. Right now China and India have the upper hand in economic growth, but this growth will bring changes and may turn the tides very quickly.