ahhaha -
I'm very pleased to see you on the thread. I have the impression that Washington is determined to maintain the strength of the dollar vs the yen, lest the demand for US debt decrease, and politicians be considered scoundrels once again. At the same time, they'd rather not have a burgeoning current account deficit, so they hound Japan to stimulate demand for foreign goods. I think I have seen you comment that the current account deficit does not matter, but I'm not sure I understand the reason.
I can't help but think that Japan would like to raise rates, in order to encourage their banks to start lending again. At the same time, I wonder if it is feasible or advisable for them to do so, and what the effect would be on the dollar.
Regardless of what Japan does, there appears to be some possibility that the Fed will be faced with the inevitability of rising interest rates at the same time that it is dealing with an abnormally large monetary expansion. I think I hear you saying that the Fed may also soon have to deal with a growing supply of US treasury paper. Altogether, this is beginning not to sound too good.
By the way, what is peu a peu?
regards - Tom |
