Ray Hendon

Hard Time for Soft Currencies

bmaclaverty: Interesting possibility--this option is always available--the U.S. has done it for the last sever years. I have not made an explicit study of bouts of competitive devaluations, so I cannot speak with any special knowledge of the subject. Just off the top of my head, if this kind of destructive practice did occur, it would most likely be on a regional basis. S.E. Asia, Latin America, Eastern Europe, etc. If this is the way it would play out, then the controlling forces would be the regional leaders. In Asia it is China, with Japan playing a more silent role. In Latin America, Mexico and Brazil are local leaders, but the U.S. is still the Monroe Doctrine practiticioner and would yield much influence. Eastern Europe is difficult for me to assess. The old Soviet Union members are now, for the most part, looking to Euroland, but some in the furtherest east (Bulgaria, Romania and all the absurdistans that populate western asia) are still under Russian influence to some degree.

It's just a guess, but I think the real leaders of these regions could keep a lid on the kind of destructive practices you fear.

Best wishes,

Ray

Hard Time for Soft Currencies

Thanks for the comments, guys. Chance, good idea about using a symbolic language in a book about currencies. I'll get to work on it, soon. (:~)

Ray

Four New Currency ETFs from Rydex

I received an email from a Rydex representative today that the expense ratio of their currency ETFs is .4%, and they though the 45 bp I mentioned as the bank spread on interest earned vs. what is paid was an allusion to the ER. So, just to be clear. The ER is .4%, and the interest spread from earned to paid is .45%.