Hmm?!

Looming Currency Devaluations

I would use the Yen as a currency since it can be borrowed at practically 0%, Japan has no debt payment drag and they own $650 billion in US Treasuries if they ever do need cash.

GDP/GNP??? ....... It is debt/GDP unless you just want to sell all those assets you keep bragging about.




On Feb 28 06:22 AM James Lewis wrote:

> X-15 if other countires do not step up and buy Treasuries, then the
> Fed will expand their balance sheet and buy them. This is the modern
> form of printing of money.
>
> Please everyone note that countries around the world need to be holding
> a developed currency backed by large debt market in order to be involved
> in world trade. Therefore you are not going to see the major currencies
> Euro, USD and Yen all drop in tandem and all money repatritaed into
> local currency. This could only happen if globalistation contracted
> back to where it was 100 years ago.
>
> So one of the currencies needs to move up.
> Central Banks are funneling money to Gold to spread their holdings.
>
> But you can not trade using gold so its really only a hedge.
>
> Everyone keep son talking about how much Treasuries are coming on
> the market and the deficits the USA has but it is all relative to
> their huge GNP/GDP. And people always refer to the 30 trillion they
> owe on their balance sheet, but never consider the value of their
> assets (people, technology, financial colonial power, military network,
> domestic infrastructure). This is worth far far far in excess of
> 30 trillion, therefore assets exceed liabilities. And lets be fair
> there is certainly no cash flow problem as long as they control the
> system (which they do)
>
> I think Europe is in far worse shape so yo'll get a situation that
> money flows out of Euros and supports the dollar. I also question
> whether it would be wise for the Europeans to sell some of their
> gold holdings a these levels to shore up their financial situation.
> This could offer an interesting counter-intuitive move.