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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (18400)	4/24/2011 3:02:25 PM
From: koan	Respond to of 119361

Boy, great chart, thanks. Isn't 72 a sort of big floor for the dollar?

To: Giordano Bruno who wrote (18400)	4/24/2011 5:46:34 PM
From: Giordano Bruno	2 Recommendations Read Replies (1) \| Respond to of 119361

China policy on foreign debt could change the Fed's direction on QE3 ...the US dollar is climaxing towards a perfect storm of destruction that the Fed and US policy no longer has the power to control. With inflation rising almost daily in many places for both food and energy, and the US debt ceiling just about to reach its maximum, the news that China intends to dump nearly $2 Trillion in treasuries onto the markets will simply accelerate the destruction. The Fed will seemingly have no choice but to purchase and monetize China's offerings, and the government will struggle to find any new source to borrow from. For years the US has played the game of debt borrowing, and reliance on foreign banks to keep their economic engine going. However, there has always been a price waiting to be paid for that reliance, and it appears now that China is calling in its markers. The old adage of the borrower is slave to the lender is going to come to fruition, as the effects of China's new direction on foreign debt reserves will force the Federal Reserve to make choices on monetary policy that they no longer control. examiner.com