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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Lucretius who wrote (3527)2/18/1999 11:05:00 AM
From: Hawkmoon  Read Replies (1) of 81987
 
Great! You mention a trend but forget to explain WHY the dollar declined.

It declined INVERSE to the yen because of the degree of carry trades based on Yen being funneled into dollar denominated issues, or the dollar itself.

When those carry trades broke the Yen rallied and the dollar suffered.

But you also failed to explain why the dollar rebounded so quickly and the Yen slid. The dollar was artificially strenghthened by that cheap capital borrowed from the BOJ. It is now at a equilibrium tha the Fed is trying to maintain through the printing of money.

Should they cease, the dollar will strengthen, the stock market bubble will expand based upon that strength, and US goods will be priced out of the market. The dollar is being artificially weakened in order to maintain global price stability in currency exchange.

Regards,

Ron
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