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Politics : THE WHITE HOUSE -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (10559)	11/7/2007 1:04:59 PM
From: DuckTapeSunroof	Respond to of 25737

"fixed income securities." FI is particularly difficult in this current environment. (Even the Canadian income trusts - which I'm partial to - have had to deal with surprise attacks from lying politicians. But dollar denominated FI might not be the place to be just yet... especially bonds in a weakening interest rate environment.) "To top it off the equity portion of my portfolio is down also the past few days which is more puzzling as lower dollar SHOULD MEAN higher EXPORTS." Exports are such a small portion of our economy that it might take quite a while for them to A) seriously benefit from the dollar decline (though I believe that is beginning now....) and B) amount to near enough to make up for the hits to consumers --- which are a full 2/3 of the entire economy. Case in point today was GM. Their exports sales were up (mostly from Daewoo partnership in Korea... not directly from the US... our cars are often considered too big and fuel inefficient on world markets) but that was just a drop in the bucket next to their bigger problems. "As to China, they will likely find they have SO MANY $$$ That there is no other currency large enough to handle their volume...." Right. No SINGLE currency... still even moving their allocation to 1/3 Yen, 1/3 Euro, and 1/3 Dollar would mean a 2/3 decline in their Treasury purchases. (Not possible all-at-once... but they could easily move toward that allocation over a couple of years... no one likes losing money....) Also --- they are wisely moving away from just sovereign debt purchases, and towards REAL ASSETS. Thus: the sovereign investment fund they setup... expect to see them buying energy resources, mines, real estate, all over the place... maybe even more technology companies. While we continue on our course of trying to borrow to cover all the costs of a hugely expensive war (this year it moves to 'more expensive then Vietnam' territory)... and then pour those assets out onto the sands of 'Mesopotamia'... never to see them again.