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

To: RealMuLan who wrote (37183)	7/28/2005 4:05:03 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 110194

>>I highly doubt this is within the US own interest<< It is, they just don't know it yet.....

To: RealMuLan who wrote (37183)	7/28/2005 6:03:22 PM
From: futures speculator	Read Replies (1) \| Respond to of 110194

>>5. Debt renegotiation/forgiveness by countries with cumulative high trade surplus with the U.S<< Just mentioning this in public will make China want to sell most of their holdings of the clown bucks debt! I highly doubt this is within the US own interest. I think China knows this only too well, which is why they've gone on a buying binge on hard assets and companies. And I'm pretty sure they have been diversifying to non-dollar assets since 2004 (per Setser forensics) What puzzles me is Japan, which has a much bigger exposure to USD than any country in the world. And is a much smaller country afterall, to be taking a risk on a $850bn reserves position. The BOJ posted paper losses of over $100bn on its forex reserves during its previous fiscal year. I think this position must be breaking even, if not actually showing a profit right now, with Yen @ 2yr lows.