Michael B. Krause

Long Term Treasury Yields Likely to Rise, Pressuring Dollar Lower

Everyone likes to be clever and say US treasury yields are going to the sky (and thus the US government is headed towards bankruptcy). Thus the massive interest in this piece.

Any article saying to buy treasury bonds right now is uninteresting, unjustified, and generally doesn't have much popular appeal.

Interesting.

Trichet, ECB Missing the Point with Crude

The European banking system is just as guilty (if not moreso) and dependent on liquidity support from their respective central banks as US counterparts. I am suggesting that 'this time around' uncoordinated rate policy is really a sloppy way of solving these inflationary tendencies.

Remember that speculative money is out of stocks and bonds, looking for a home. That $240B (or whatever the # is) is now pumping commodities.

Also considering the destruction of wealth and reigned in credit (slower velocity of money as well), I am not sure total money supply is so 'pumped' as of recent despite what shadowstats might suggest. Whatever has been sent to the system offsets the hundreds of billions of wealth that have already disappeared (or been transferred to 'subprime' assetholders).

I agree the EU should look out for itself, and it should not have to pay for US policy recklessness as well. But at the same time, my criticism focuses on two issues seperately: 1) rate policy may be ineffective versus actual coordinated world energy policy (and this should have been done a long time ago), 2) the EU is now not backing up the Fed, but they were months ago. The EU has not decoupled from the US economy, and erroneous moves have negative ramifications for them as well, despite the wave of anti-US dollar sentiment that is so popular now.

How Bad Is the Dollar's Fall?

Take a look here.. This is coming to seekingalpha - a pro-USD argument.

scriabinop23.blogspot....