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

To: Jim Willie CB who wrote (6994)	2/5/2004 1:15:33 PM
From: Chispas	Read Replies (1) \| Respond to of 110194

Matt Druge (bless him) is picking-up on the "China Thingie".. ``````````````````````````````````````````````````````` China Forecast To Become EU's Top Trading Partner In 2005 Thu Feb 05 2004 10:17:54 ET For China, this could well be the Year of Europe, the WALL STREET JOURNAL reports on Thursday. Little noticed above the clamor over China's economic boom and the size of the U.S. trade deficit with China is an economic forecast with huge repercussions for business: In 2005, the European Union is likely to become China's No. 1 trading partner, displacing the U.S. this year and Japan in 2005, according to the EU Commission in Beijing. EU policy makers say they sense an unprecedented Chinese interest in Europe, chiefly driven by China's hunger for export markets, which are seen as key to sustaining economic growth at home. Officials add that it is also partly the result of Beijing's quest for new allies to bolster its view of the need for a multipolar world, rather than one dominated by the U.S. Developing...

To: Jim Willie CB who wrote (6994)	2/5/2004 7:33:10 PM
From: BEEF JERKEY	Read Replies (1) \| Respond to of 110194

"Despite its depreciation over the last year, the dollar still appears overvalued from a medium-term perspective, and the risk that its adjustment may become disorderly - or that it might overshoot - cannot be ruled out." The author compares the current situation / cycle to what occurred in the 80's but other factors also work against the dollar value that were not so prominent then. The world is now more awash with excess US currency while less gold is held by Central Banks. The Fed has been and continues too be far looser than in the 80's. Further the US has been gutted of its manufacturing base. Throw in the much higher debt burdens of the US consumer and the resilience of the US economy now must be questioned. It could be that the US buck depreciates so far it even surprises the worst pessimists.