Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ild who wrote (46187)	11/28/2005 10:34:55 PM
From: bond_bubble	Read Replies (1) \| Respond to of 110194

I think Roach is completely wrong on this. The Middle Eastern countries currencies are pegged to USD. Which means they have not appreciated against USD. This would mean, all the oil exports (collected in USD) has been used to purchase goods and services from abroad and they have no more USD left!! I dont think that is the case. All the money printed into MiddleEast's Stock Exchanges are money printed in local currencies - not USDS!! So, these excess USD (total exports of oil minus imports of goods and service) has to used to buy foreign govt bonds (otherwise their currency should be unpegged from USD and allowed to appreciate) AND it has to be USTreasuries. Roach never mentioned these guys bought Euro bonds. For some reason, he is conveniently chosing to be ignorant.