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Strategies & Market Trends : The coming US dollar crisis

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To: ldo79 who wrote (519)7/23/2007 10:30:21 PM
From: Real Man   of 71456
 
Got to back it up with something more than just words now.
Higher interest rates? No US hike while foreigners are
hiking, and the "awesome" carry trade will drop the buck quickly as
others raise the same way as it provided support for so many
years when the Fed was raising -g- It appears that due to
immense derivative positions rates are much
more important nowadays than the trade balance. Some nations
have incredibly strong currencies solely due to the carry
trade. -g- Drop the rates now, and to Hell the buck goes,
cause the mega-derivative positions will have to adjust
according to pre-set LTCM-like rules. Da Fed is kind of screwed
by the monster of their own creation, a bit ironic. -g-
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