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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: bond_bubble who wrote (62417)6/1/2006 10:15:36 AM
From: russwinter   of 110194
 
The USD not only affects inflation expectations, but also the ability of the US to get Ponzi financing for massive twin deficits from foreigners. Think this mention in the minutes combined with the Paulsen appointment at last recognizes that. The US has been put on notice by foreigners, and I have have cited numerous instances of that on my blog. I think foreign vender financing is the primary ball to watch.

In terms of actions though, the Fed looks loose since the last rate hike, so may be mostly talk? Stop out rates are well below fed funds, at 4.91% today, and they kept the TOMO balance high at 31.25 actually adding an extra 0.5 today. Japan drained 1.3.
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