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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (6008)	5/10/2004 9:01:14 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 116555

methinks rout over when Fed talks down economic growth and admits that job growth is not as good as it looks behind the scenes, Fed is monetizing the Fanny hedgebook if they "leaked" that news out, the US$ rally would fade by late summer, it will be clear that the negative real rates have gone farther negative the Fed wants two things: US$ to decline slowly, LT rates to rise slowly take a look around at the carry trades dollar-euro getting hurt dollar-eurodollar getting hurt dollar-jyen getting hurt dollar-gold getting hurt the Fed will keep the TREZ YIELD carry trade alive & well by hiking rates very slowly more slowly than inflation is measured (CPI reflected in TENS) thus: negative real rates go more negative (GOOD FOR GOLD) THE TREZ YIELD CURVE IS STILL SHARPLY TILTED (STEEP) the Fed desperately wants to keep it that way since it is a sign of inflation winning and source of financial sector major income / jim