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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Provider who wrote (97662)	5/18/2009 7:09:26 AM
From: Dan3	Respond to of 116555

Re: Our creditors will want more money at some point, but who knows how long it will be before that and the huge deficits will go hyperbolic Short term, the action is apparently in "closing out bets on other currencies and buying dollars and yen." reuters.com There should be a rally this morning as dollars come home. The news this morning is that the Yen is deflating (wholesale rate) at a rate of about 3% per year, so holding cash (in Yen) earns you 3%... Explains why the Yen is up. Given that the US dollar is still inflating at about 2.5% per year (wholesale rate, leading indicator for general inflation), I don't see why investors are also moving into the dollar.