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

To: Real Man who wrote (78355)	1/31/2007 3:30:57 PM
From: Tommaso	Read Replies (1) \| Respond to of 110194

The Japanese seem to be in a position to call the shots when it comes to currency values. Several years ago, they ought to have been building a position in gold (when gold was at about $250) but ever since Keynes called it a "barbaric relic" central banks have wanted to get rid of it. One might as well call a policeman's night stick a barbaric relic. I didn't realize that the USDX is 57% Euro. The Euro area as a whole has a trade deficit, although Germany has a big surplus. Britain is getting about as bad as the U.S. Canada has a big surplus right now, but a lot of Canadians seem to think a strong Canadian dollar is a bad thing. Canada itself seems always a few steps away from breaking up into several separate countries. Japan is economically and culturally more tightly knit and in a position to makes its presence felt if it chooses. But I guess it does not want to be seen as responsible for the dollar's inevitable decline.