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

To: Haim R. Branisteanu who wrote (4614)	1/8/2004 6:26:57 PM
From: philv	Read Replies (3) \| Respond to of 110194

"there is a financial war going on between EZ and the US." You are right. This has been going on for quite some time, as the EU has resisted pressure to follow lock step with the FED. In the end, they have been forced to follow, but lag behind somewhat. The constant and severe criticism leveled against the ECB during this period of slashing interest rates is on-going. But curiously, this at a time when the US "wants" and "needs" a lower currency. Europe has complained for months now that they have had to do the hard lifting, and have criticized Japan for their overt control of the YEN. The US can't have it both ways. If costs and jobs are important, they need a weaker dollar, and their monetary policy certainly supports that. In my opinion, what the Asians are doing, especially Japan, in debasing their own currency, is robbing their own population, spending their savings, in an attempt to keep alive their price advantage against the US dollar. This is not without cost, because their currency is sinking right along with the US dollar, effectively making everyone poorer. How long can this go on, and why no one is complaining as their world-wide relative wealth declines are questions to ponder.