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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (64126)5/29/2003 11:27:50 AM
From: Real Man  Read Replies (1) of 94695
 
Old tricks.

Foreigners need to export to the US, which is perceived to be the World growth engine. They are fighting deflation at home. Here is how this goes: They have HUGE trade surplus with the US, but they don't allow their currencies to rise. Instead, their CBs are buying US treasuries as reserves to offset trade imbalance, and more. The game goes on, and on, and on. For now, the game did not change, just the trade imbalance grew bigger, so the dollar fell? They may never decide to sell.
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