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


To: bond_bubble who wrote (54808)2/27/2006 12:59:51 PM
From: russwinter  Read Replies (3) | Respond to of 110194
 
The US trade deficit with Japan has grown not shrunk. Japan's trade deficit with other countries besides the US has shrunk.

US with Japan:
2004: 75.2 billion
2005: 82.7

US with China:
2004: 162.0
2005: 201.6

US with Saudi Arabia:
2005: 20.4

The petrodollar deficits are small relatively speaking, suggesting that Asians are still the sloppy buyers of US debt securities? China seems to be the key player.



To: bond_bubble who wrote (54808)2/27/2006 1:00:40 PM
From: UncleBigs  Respond to of 110194
 
The FCB's can print their domestic currencies and convert them to dollars in the foreign exchange markets.

I really don't think the FCB's care about market losses on their U.S. bonds. It's all about maintaining a desired exchange rate to support their domestic economies.