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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: CalculatedRisk who wrote (2602)3/21/2004 4:17:20 PM
From: NOW  Read Replies (1) of 116555
 
"The real purpose for that intervention is nothing less than keeping the world's equity markets intact by flooding it with liquidity via the purchase of all the dollars raised in this process under the management of the NY Federal Reserve Bank.

I do not believe the BOJ can simply walk away from intervention so my feeling is there will be some technically-timed intervention by the BOJ in the dollar/yen equation. Nonetheless, the use of this dangerous “Made in Japan” Bernanke Electronic Money Printing Press has run its course. The damage has been done. It will take generations to set this right.

A deceleration in the use of this Japanese monetary experiment at the request of the Federal Reserve now places the world's equity and bond markets in potential jeopardy, setting up the probability of Stagflation and the inclusion of inflation into the weak dollar equation
"
Jim Sinclair
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