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

To: skinowski who wrote (52707)	2/5/2006 10:35:54 AM
From: shades	Read Replies (1) \| Respond to of 110194

Right, it is just like mish's cspan appearance today - the real issue is RESERVES - not price units - but I think benson was saying the oil countries need to be kept in check to hold dollar reserves and keep buying our debt so the party continues - somehow pricing oil in dollars is connected to this reserve issue. IE china cant buy her oil from saudi boys unless she gives them lots of us greenbacks - that the USA wont let the saudi boys take her yuan. So your instant convertible hopes are dashed under that scenario eh? So even though china may be divesting herself of lots of green paper - her oil prices will skyrocket - the saudi boys will then increase their reserves of US dollars and keep the debt bubble flowing. He called it the greatest central bank heist in the history of the world.

To: skinowski who wrote (52707)	2/5/2006 12:19:48 PM
From: regli	Read Replies (1) \| Respond to of 110194

"I could never figure this one out. If I want to buy something priced in dollars, and all I have in my pocket is a bundle of Thai baht, the vendor will simply whips out the calculator. Currencies are instantly interconvertible this day and age. However, you might have lost a lot of money in the process if the dollar appreciated significantly against the Baht since you purchased Bhats. As a result you then might decide to establish a reserve of Dollars to guard against such an event. The more reserves, the higher the demand for dollars.