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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (3227)	12/11/2003 6:22:49 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

USD weakness (requiring a currency defense) Why do you keep saying this? If you answered me before I somehow missed it. If the US was all hot and bothered by a sinking US$ why on god's green earth would they be pressuring China to float the YUAN which would likely sink it? Add 2 and 2 and what do you get? The obvious answer is they WANT the US$ to fall. A second acceptable answer is they do not care if it falls. The only REASONABLE conclusion one can take from all these facts is US $ weakness will NOT require currency defense (except by the Japanese who are willing to do it for US!) You assume 1) They HAVE to defend the US$ I assume 1) They do not HAVE to do anything 2) They MAY in fact actually want the US$ lower but for obvious reasons can not say it 3) They MAY not much care except in relation to the YUAN 4) They did not defend the US$ at 100, 97, 95, 92, or 90 why would they HAVE to defend it at 88, 85 or 82? 5) My personal belief is they really want it lower. Their actions SHOULD cause a reasonable person to conclude the same thing or at least ambivalance (at least at this point in time, perhaps they will care at 80 or 65 or perhaps not - who knows?) I believe this argument is not even close, but please address that issue again for me, if you did it before, because we violently disagree about this point. I am all in favor of "light". Shed some light on this topic for all of us, addressing my major points if you can. Thanks Mish

To: russwinter who wrote (3227)	12/11/2003 6:32:52 PM
From: Crimson Ghost	Respond to of 110194

Interesting article on Fall Street (I will try to post the link) argues that the Fed (copying the Bush neo-cons) sees nothing wrong with deliberately deceiving the markets to achieve its "noble" ends. Today's leak has all the earmarks of another such deception IMHO.