The Epic American Credit and Bond Bubble Laboratory Message Board

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

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To: Haim R. Branisteanu who wrote (15245)	6/14/2004 10:31:50 AM
From: BEEF JERKEY	Read Replies (2) of 110194

I notice the overall trade gap has come in at a shocking $48.3 billion and gold and the dollar barely budged! There seems to be no concern about it. If I understand the mechanism properly Asia prints money to finance the US trade deficit to keep their currencies relatively low. I suppose they take all this US paper and add it to the pile of US paper they have already received for the durable goods they ship to the US. It seems a painless act to print paper and exchange it for US dollars but what will they do with all this US cash? It would seem the more they accumulate the harder it will be to get exchange for anything of value. It could be that the dollar value is being held up by Asia hoarding US $$$$ but how long can that circus play? Ultimately I don't think Gold can possibly lose.

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