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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ldo79 who wrote (519)	7/23/2007 10:30:21 PM
From: Real Man	Respond to of 71455

Got to back it up with something more than just words now. Higher interest rates? No US hike while foreigners are hiking, and the "awesome" carry trade will drop the buck quickly as others raise the same way as it provided support for so many years when the Fed was raising -g- It appears that due to immense derivative positions rates are much more important nowadays than the trade balance. Some nations have incredibly strong currencies solely due to the carry trade. -g- Drop the rates now, and to Hell the buck goes, cause the mega-derivative positions will have to adjust according to pre-set LTCM-like rules. Da Fed is kind of screwed by the monster of their own creation, a bit ironic. -g-

To: ldo79 who wrote (519)	7/24/2007 5:01:48 AM
From: RockyBalboa	Respond to of 71455

Uh, eh. Wishful thinking. Every line in paulsons speech sounds like a prayer... "that a strong dollar was in the U.S. interest and currency values should be set in free and open markets" Ok, we go lower, or at least we don't care at all. "Paulson also told CNBC that the subprime mortgage problems could be contained and would not hurt the overall economy." Like radioactive pollution, bad credit is spreading around and don't halt at country or city borders. Pfft. However, he added that the United States needed to continually review its business tax structure to stay competitive in global trade. Statutory U.S. corporate tax rates are now higher than those of most major trading partners We want to do something with the tax as we know it is too high but we can't for public debt reasons...