ASTONISHING CHINESE GROWTH RATE MAKES YUAN FLOAT A CERT

The much-vaunted US recovery seems to be having a few relapses. The latest Fed Department of Employment data show that a surprise 25,000 more names went on the register last month.

U.S. stocks fell on the news, with benchmark indices retreating from 18-month highs immediately following release of the news about unexpected increases in unemployment claims.

As The Slog has been saying for some seven months now, it is remarkable how many times bad news is described by the news media as ‘unexpected’. Who exactly are these people who unexpect rising deficits, growing trade gaps and growing unemployment: do they all work on the exchanges? I don’t know anyone in my inner circle who’s surprised by any of this.

Still, it’s good to see that at last Europe’s Central Bank has woken up to the patchy US recovery, and how this contrasts with China steaming along at 11.9%. In a statement unusually short of spin and woffle, the ECB’s release today warned:

‘At the current juncture, global imbalances continue to pose a key risk to global macroeconomic and financial stability . . . The stakes are high to prevent a disorderly adjustment in the future that would be costly to all economies…’

Or put anotherway, aaaaaaaaaaaaaaaargggg.