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

To: mishedlo who wrote (6837)	2/3/2004 2:02:36 PM
From: philv	Read Replies (2) \| Respond to of 110194

But it is Japan who perceives a necessity of devaluing the YEN. If the ECB cuts, and drives down their currency, how is that helpful for Japan? Japan has already gone all the way to effective zero. They are out of Ammo in the interest rate game. All that is left for them is to go on doing what they are doing.....support the dollar, keep it floating. If the ECB were to cut rates, does that mean that Japan will have to redouble their buying of US paper? Or, if the US cuts her rates.....ditto. Japan has a lot of buying yet to do. <g> Speculation is that the ECB will not cut, and the US will not raise rates to support the dollar. And the chances that the US cuts rates is slim. So, looks like it is a stalemate.