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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (7955)	6/16/2007 10:43:58 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 33421

What the f is going on with the global economies? The major players are keeping the pedal to the medal. Why? What are they afraid of? A couple of scenarios that I see.. The USD is near decade multi decade lows and the Yuan is pegged to it. So the only way to get the Yuan to rise is to make the USD rise. Secondly (and I'm not as sure about this one), is that looming demographic issue the Japanese face, combined with their massive national debt/GDP. If they permit GDP to decrease, that debt overhang will not be reduced. Thirdly, Japanese banks rely upon the carry trade in order to sustain their balance sheets until domestic borrowing can replace foreigner's arbitrage. And finally, it may be a reaction to decreasing (or stagnant)Japanese consumer confidence: newratings.com What do you all think about those arguments? I certainly invite other opinions. Hawk