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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 (7757)	2/11/2004 5:03:42 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Russ, I sure wish you took profits on those Eurodollar plays. We both would have won from opposite sides. I probably have some puts that have fallen to 1-2 points now from 10-15. As soon as that happens I will take them off. I will add futures on dips and sell into rallies as I did today. Again, I am playing Greenspan not Russ. I have been short some of these puts for months and even if we head nowhere, I win big. Mish

To: russwinter who wrote (7757)	2/11/2004 5:15:28 PM
From: mishedlo	Respond to of 110194

From Harmy on US sugar deal. But an even bigger reason for the flight of the lollipop and sourball makers is the U.S. price of sugar. Candy manufacturers operating in Mexico and Canada pay world rates for raw sugar -- about half the federally supported U.S. cost -- and can easily undercut U.S. The US borrows money to fund it's deficit (and pays interest) which it then gives in the form of a subsidy to its soybean growers who produce so much of it that much of it is dumped at far below cost on world markets. China buys up this cheap soybean bonanza to feed it's people who, if you think about it, are being fed at the US taxpayers expense. The US also does exactly the same thing for cotton growers and also pays them a subsidy to produce cotton in such quantities that the world markets are flooded with dumped US cotton. China (and others) then buy this cheap commodity, at prices far below what it costs to produce, and turns it into cotton apparel goods which it then sells to the US who borrow yet more money in order to buy the stuff. So China's cotton industry is being subsidised by the US taxpayer again. Of course, the obvious question that springs to mind is that, bearing in mind that the US cotton apparel industry has been decimated by foreign competition, one would have to wonder why the cotton industry is being subsidsed at all but that point is totally beyond my ability to comprehend. However, moving on !! We also have the sugar industry where the same process plays out. Borrow money, pay interest, subsidise sugar farmers, force local candy manufacturers to pay twice the world price but who cares if they can't compete with foreign competition, dump the surplus on world markets, allow China (and others) to buy the raw commodity at prices far below what it costs to produce who then re-export it to the US for the taxpayer to borrow more money with which to buy it. So Jean, in a nutshell, the US taxpayer is feeding China's workers to produce goods made from commodities provided by the US taxpayers generosity so that the US taxpayer can borrow more money to buy those goods. It's like something out of a lunatic asylum, or straight from Mad magazine, except that this is the reality of the US today. .........and one more thing Jean, all this is simply because the US politicians want the votes that these subsidised industries bring in. Have a happy day !! Regards Harmy