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

To: Tommaso who wrote (1223)9/29/2007 11:37:39 PM
From: RockyBalboa  Read Replies (1) | Respond to of 71456
 
Good idea. Given the size of the debt markets other CBs and their countries commercial banks can not abandon US debt easily. Selling the lt debt would only contribute to the debacle by driving yields up and valuations of the remaining portfolios down.

What they can do is hedge their currency exposure as much as possible, therefore betting on the US yield curve. They are the largest carry traders now.



To: Tommaso who wrote (1223)9/30/2007 6:20:29 AM
From: William H Huebl  Respond to of 71456
 
No doubt the Feds were caught between a rock and a hard place and they did what they thought was the lesser of 2 evils.



To: Tommaso who wrote (1223)10/2/2007 10:56:53 PM
From: the navigator  Read Replies (3) | Respond to of 71456
 
I think the (unarticulated) decision is to inflate the country out of its commitments.

Like the Germans tried to inflate themselves out of WWI repatriations?

When I hear something like that I think to myself, "no, that can't be. All they have to do is look into the past just a little bit and see the consequences." Then I look at Iraq and Viet Nam and realize our leaders really can be that stupid.


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