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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Taikun who wrote (60492)2/22/2005 12:56:13 AM
From: TobagoJack  Read Replies (4) | Respond to of 74559
 
<<They are increasing everyone's funding cost in the process, and those two can least afford it!>>

... yes, excellent news for savers who make the correct allocations :0)

... problem, what is the correct allocation?

Another thing about <<screw>> ...

What happens if China is working to earn USD, and turn around to use the earned USD to buy Japanese Yen, instead of sticking the pile in US treasuries?

... Well, Yen will tend to rise, and USD will tend to fall, pushing Japan to intervene against the Yen and for the Dollar by printing more Yen, which the Chinese will buy more of, et cetera, ad infinitum, and oh my golly, pretty soon we would have a mess bigger than we already do, perhaps like a putrid whale on top of a kitty litter box in the guest bathroom, difficult to not notice :0)

Continuing in this way, US will lose more factories, along with Japan, but both plus China will have an improved lifestyle of less expensive DVD machines and Lexus SUVs, until not, I guess. Win win and win, or not.

I am so confused.

Chugs, Jay



To: Taikun who wrote (60492)2/22/2005 2:53:54 AM
From: energyplay  Respond to of 74559
 
With a 50 year French bond, you (or whoever gets stuck with it) is expecting a payout from a country that might be 30% or more Islamic in 50 years....

A country with relatively little in the way of hydrocarbon energy resources.

This is a bond denominated in a currency (Euro) which is still not completely proven - this is not the DMark or even the French Franc --- it has been called the Euro Lira....