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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (103523)10/30/2013 11:43:06 PM
From: Snowshoe  Read Replies (1) | Respond to of 217789
 
Something else to fret about...

Asian crisis looms and Fed is to blame
Commentary: Flashbacks to debt and currency ‘death spiral’

marketwatch.com

By Michael Casey
Oct. 30, 2013, 11:32 a.m. EDT

Don’t look now, but another Asian crisis may be brewing — courtesy of the U.S. Federal Reserve.

A paper recently published by the Bank of International Settlements — a multilateral club of monetary authorities that includes the Fed as a member — noted that central bank bond-buying, or “quantitative easing,” has made dollar-based loans so cheap that Asian companies are ramping up their borrowing in greenbacks. The paper’s authors fear that once the Fed and the Bank of Japan eventually turn off their liquidity taps, rising dollar interest rates will leave these Asian debtors unable to pay back the money.

That should trigger uncomfortable memories of the debt and currency “death spiral” of 1997-98, when plunging local currencies fueled a crisis in Asia that spread financial contagion around the world.



To: elmatador who wrote (103523)10/31/2013 2:24:49 PM
From: Haim R. Branisteanu2 Recommendations

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  Read Replies (1) | Respond to of 217789
 
Elmo this is the most ridiculous report issued by a government entity

"The US Treasury took an unusual swipe at Germany and blamed its large current account surplus for giving a deflationary bias to the euro area and the whole world economy."

Germans are savers, they do not spend on what they do not need, or trow out what can be of use. Their attitude to managing their life is very different from the spending binge US have as an entertainment.

Going shopping is not a entertainment event as in the US but a conscious approach to what I need and indeed if I do need it.
I do think that the report should be totally different try to educate the US consumer to spend only what he earns and on what he really needs.