The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: shag007 who wrote (20954)	6/24/2009 1:21:49 AM
From: Real Man	2 Recommendations of 71456

It's just the standard deviation quant "model" trade that got resurrected in all markets with Fed liquidity. It blew up this Fall as CDS blowup spread to all other derivative markets. Still, if interest rates start moving up or down sharply it will blow up again. We have seen a steady rise. We are seeing carry trade coming back to life in currencies and that pushes the clownbuck down. Nothing else matters in this grossly overleveraged global derivative markets, not the amount of printing, not the current account deficit. The latter has improved, but that's rather a sign of deep economic depression in the US. They will not trade according to fundamentals until the whole Ponzi scheme goes down the toilet along with the Fed that now has become its guarantor and perpetuator of last resort. Unfortunately, the money they can print is infinite, so they can perpetuate the Ponzi scheme forever causing credit hyperinflation. So far they are showing strong propensity to do so. They are doing exactly what they did before on a grand scale, as things blow up left and right.

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