The US Numbers Continue To Look Good....

Despite the fact that the Fed has raised their target Fed Funds Rate from 1.00% to 3.25%, the economy appears to keep humming along.

The Institute for Supply Management said today that its factory index rose to 53.8 from 51.4 in May. Manufacturing remains in an uninterrupted expansion that began in June 2003, marked by readings higher than 50. The University of Michigan said today its sentiment index reached a six-month high in June.

Of course some will vilify Bush for creating a gigantic deficit and yes, he should be vilified for the troubles that he caused during his watch. If it weren't for September 11th, the wars in Afghanistan and in Iraq, those deficit numbers may look somewhat different.

However, through fiscal spending and the Federal Reserve monetary policy, the economy has not, as of this writing, collapsed. And who knows, maybe things will just work out fine for the resilient US economy.

So, strong economic growth is definitely a positive for Asia and there remains little risk as long as the US stays healthy. By the way, how are things going in Europe in the meantime?