The Oil price has been trundling downwards from levels which were clearly irrational, but just for a correction, maybe it needs to move downwards a little bit more.
Now the Chinese economists consider that the Oil price is in a short-term downtrend as their consumption figures are downwards. The Chinese fiscal surplus having grown by over 12 percent, there is sufficient liquidity there to keep the domestic economy ticking over quite well, but they are concerned about what is happening in Europe, and suggest that there should be co-operation within the Eurozoner to make it a little easier to forecast and create growth in the medium term.
The news about the bailout of the Spanish banking sector has created optimism, and it should be so in fact, if cash flow is introduced into the system and starts to reach customers for their business, personal and mortgage needs. The keystone in the economy is jobs growth which would underpin the housing market, which would be helped by encouraging buyers from overseas, some of whom may wish to obtain residential status there.
As for the U.S., the high Oil price had an impact on slowing down job-creation, but MrObama needs bipartisan co-operation in his policies towards this end. Hopefully, the Republicans will extend Mr Obama further co-operation so more jobs are created and the gradual but sure economic Recovery stays on track. Job-creation and a productive work-force will create wealth as well as heatmaps of happiness. For that I pray.