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


To: Chispas who wrote (16448)11/21/2004 2:44:03 PM
From: russwinter  Read Replies (3) | Respond to of 116555
 
<what is your time horizon ?>

IMO much sooner than most think. Some signs already in fact. I think they will try and be gradualist about it, but LOL. I believe an undefended USD fall, is a killer for all parties, especially the enablers. Remember they are huge long the USD, and it's been a losing Old Maid Card trade. They may not sell, but utilizing and preserving what they have on hand is paramount. Establishing higher rates in the US does two things: compensates them better for their huge risks, and slows the endless creation of more Clown Bucks:USD supportive. Then they can spend Clown Bucks in Asia where it's vitally needed, rather than subsidizing US consumers.