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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: mishedlo who wrote (7309)2/8/2004 10:46:53 AM
From: Louis V. Lambrecht  Read Replies (1) of 110194
 
mish - already told you ECB cannot afford to cut rates.

Now Herr Sinn of IfO wants the ECB (in fact, not the ECB, the ESCB including Scandinavian countries and UK) to sell Euro and buy USD.
Fine, Japan is a big buyer of USD now. This said, ESCB selling Dollars will work against the BOJ.
Euro is not a reserve currency: Euro presses cannot run yet, some treaties have to be called off (i.e: "stability pact").

Europe buying Dollar to Japan is a nice way to waste money for nothing.

While Asian countries are diversifying their reserves and be buyers of Euros.
Here also, I doubt that selling Euros will have a big impact as buyers exist.

Of course, when the charter of the ESCB will be modified (and it has to be modified if the currencies start their competitive devaluation) things could be different.

Meanwhile, BOJ is selling Yens to buy Dollars for months, and this is not helping the Yen to drop.
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