This afternoon, the Federal Reserve Bank released its latest Beige Book reading on the current state of American economic conditions. The good news is that the survey reported modest economic growth across the Fed's 12 regional districts. The bad news is that the Beige Book found no signs of an increase in hiring. The Beige Book found "Many firms reluctant to add to permanent payrolls given economic softness."

Why is the Beige Book important? Many experts feel that this report gives the Fed a better read on the current economic conditions, which could give some hint as to what action the Central Bank will take when it meets next in early November. Judging by the tepid reaction on the Street, this report lent little credence to any belief that the Fed will take any noticeable action.

Financial Times and other news agencies (including our own Connie Madon) report that China now dominates world export economy superseding Germany, Europe's largest economy and former number one exporter. Despite resurgence in the later half of the year by growth in exports and the emergency action taken by the German Government and the Central Bank, Germany came second to China.

With the pace of economic recovery on the slow, Germany has something to be concerned about. German exports increased by 1.6% in November 2009, raising hopes that the final quarter of 2009 would bring an increase in financial activity.

For the fourth month in a row, Bank of England interest rates will remain at the record low of 0.5%. In an announcement today, the UK's central bank said it would not expand its quantitative easing of financial markets, much to the surprise of the market. The bank has been buying up assets aggressively, printing cash to finance what is likely to be £125 billion in purchases by the end of this month.

Financial markets expected a much different play, involving an increase in this asset purchase target by another £25 billion (to £150 billion). This move would have let the Bank of England shove even more money into the economy through next month, which is when the bank publishes its latest quarterly economic forecast.

There's much speculation today about the possibility of yet another interest rate reduction by the Federal Reserve. Some people indicate they think another rate cut would be a good thing. Pardon me while I ask: Are they nuts?

The dollar is already devalued to the point that our trading partners are getting edgy about their export values, and you can forget about foreign investors sticking their money into American companies to help spur development. Low level municipal bond issues could soon become a thing of the past, and that concept of placing money into conventional savings accounts? Yeah okay, I'll get right on that.

Jim Cramer sings a gloom and doom song about 7 million home owners becoming renters, and declares that the nation will be required to swallow $500 billion in losses. He alludes to a wholesale crumbling of major banks. I see no mention in his blog about possible alternate solutions to the trouble that sloppy bankers have caused themselves. Personally, I don't think that ruining the dollar with yet another round of artificially created economic stimulation based on cheap credit is a good long-term solution for our country, although it might allow some of those sloppy bankers another breather before they have to face the music. The thinking that cheap bank credit will help the economy by infusing borrowed money into the stock market and loosening up spending habits is nothing short of a sucker's bet.