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

To: redfrecknj who wrote (22267)	11/22/2004 2:37:55 PM
From: NOW	Read Replies (1) \| Respond to of 110194

from that same article and I agree: "Self-feeding currency trends are often very persistent. There is a good chance that the US dollar will not commence a bottoming out process until there is multilateral central bank intervention in its support. To be really effective, this would have to include participation by the US Federal Reserve, for its own account. Multilateral intervention is a very rare occurrence, because the world's major central banks will not undertake it unless all agree that the continuation of a currency trend is prejudicial to their own national interests. I would be very surprised if either the US Federal Reserve or Treasury felt that way today, although this would change if the dollar's decline were perceived as a crisis in the US. By my recollection, we last saw multilateral intervention in support of the dollar near at least two of the three lows between 1991 and 1995, shown on this monthly chart of its Index. Multilateral intervention last occurred in September 2000, in support of the euro. It did not mark the exact low, but it certainly started a lengthy bottoming out process." Why would the FED want to support the dollar here anyone?