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

To: No Mo Mo who wrote (25814)	12/22/2009 10:51:10 AM
From: Real Man	Respond to of 71456

The issue is mute, because prices for their goods are marked up 200-300% when they come to the US. Notice how the Europeans are ones screaming about the weak USD, while the Chinese scream about the value of their treasury holdings. I don't know if the screams will translate into something, but I am certain the recent caboose shaking by Ben was done to please the Chinese. Caboose shaking is done to pretend we are moving, whereas no real tightening is happening or is planned until housing and jobs start to recover rather drastically. Known bubble tools are used to induce that. Namely, as asset prices recover, so will consumption, or so they think. Since the participation of J6P in this rally is rather weak (they have been buying bonds all year), don't expect the stellar market year to reflect on consumption (which is what the government wants), so, I think we will likely fall back into recession once the stimulus is done and over with. No, that does not mean higher dollar. The rates will stay ZIRP.