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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 (19377)	10/4/2004 10:05:37 AM
From: Wyätt Gwyön	Respond to of 110194

my point about CHF had nothing to do with the size of their economy--it was an allusion to the conflation of "strong currency" fantasies of gold bugs with the realpolitik of global currency-beggaring. the idea of "reserve currency" is misunderstood--it has nothing to do with the accumulation of gold and baubles, as the USD so clearly indicates. it has nothing to do with trade surplus, as USD again shows. Japan is the second biggest economy in the world and has the biggest net international investment position, but do they want JPY to be a "reserve currency"? do you expect China to magically change from a third-rate mercantilist Japan-wannabe to a gleaming first-world megapower? only in its wet dreams could China be as successful as Japan--the pinnacle of Asian mercantilism. but the Japanese do not want reserve currency status. thus they direct BOJ to cheapen JPY as much as possible. so it goes with China, albeit with less flexibility due to their earlier development stage.