Money Appears to Be Tiptoeing Back into Emerging Markets [View article]
"Last year, the yen literally beat the performance of 177 currencies."
What are the chances that this will repeat in 2009? I am short FXY (via puts).
Also, if Japan money is moving into emerging markets, what do you think China is going to do with all those dollars when they see the USD heading downward?
BTW, they must have made a very nice profit on all those treasuries they own, so they shouldn't complain (but they will) when values go back down as interest rates rise.
The US dollar has to fall in value. We are taking on more debt than we can service. To keep interest rates and payments from overwhelming us, the Fed will buy Treasury debt. This will increase the money supply and lead to inflation and a drop in the dollar. That in turn will reduce debt service burdens as well as reinflating asset (e.g., housing) prices. We will all have more dollars but be poorer.
Money Appears to Be Tiptoeing Back into Emerging Markets [View article]
What are the chances that this will repeat in 2009? I am short FXY (via puts).
Also, if Japan money is moving into emerging markets, what do you think China is going to do with all those dollars when they see the USD heading downward?
BTW, they must have made a very nice profit on all those treasuries they own, so they shouldn't complain (but they will) when values go back down as interest rates rise.
Wrong Great Depression Lessons Will Haunt Equities in 2009 [View article]
On Jan 01 01:01 PM Griz wrote:
> I have one question: Is more credit the answer?
Wrong Great Depression Lessons Will Haunt Equities in 2009 [View article]
2009 Economic Forecasts Ignore Demographic Shift [View article]