elwind45

Dollar Falls as Stock Rally Tempts the Carry Trade

Why not fold FAN/FRED into AIG? The cash flow from AIG will cover the property. Sell the countries gold for 180B and request the banks to sell AIG equity to FED. While the AIG equity grows the FED can score the equity in trust for the banks. Holding the debt until maturity and shifting the income to the property instantly stablizes R.E. Banks can hold the deeds and the fed can charge usury against the AIG equity in trust. This type of scheme should hold the line. The FEDZ own most of NEVADA and can start digging to replace gold. I would start buying up mining equipment to rent out to small miners for royalties. The finding of gold is easier now than ever. Its the cost of getting out of the ground is costly part. The FEDZ wiped out the equity in fan/fred and left AIG intact. This would be one helluva shotgun wedding! AIG holds equity positions in about every company on the planet. A cash flow machine in 130 countries. Can be used to stablize the dollar. Soak up extra dollars by raising premiums.

Why the ERO is Ready to Rally

Without a US rate cut central banks will start selling dollars to defend currency rates. Korea is starting the process and many will follow lead. Has anyone noticed the large amount of world government failures? This episode ends with a falling dollar or a falling economy! I fear sunday night the bottom is blown out of world stock markets caused by IKE. I futher think this dollar rally is tied to export sales of softs. We do need to sell less softs so we have something left to consume!

Pending Fed Rate Decision, Dollar Loses Steam

Just because the credit is being pumped into the system doesnt mean it is reaching the economy. This credit is targeted to the banks balance sheets. The fed is restricting credit for growth. The banks are hoarding the liquidity. An example would be mae and mac.It would be better in long run to allow the foreclosures to continue. Having the government on the hook for the asset, and bakstopping the loss is easy street for the mortgage holder. Just empty the house and move on. A rate cut would help the I-banks balance sheets and since they have tied themselves together, if one fails they all go down. This economic blackmail has no end. It would be better to enter a sweepstakes on naming the new system than to worry about what if's. Take 2% down to zero what the heck? Its F'N over, over over over over get it?

Is the Buck Really Back?

The Increase in trade is only a temperary thing. The world will look back to this period in the context of rates being left too high for too long. The U.S. may recover faster than rest of world, however trade will suffer because of global downturn. The Euro/Dollar recent change has more to do with Russian politics.(Georgia) I believe this is a rare time when investing in Emerging market debt will yield handsome results. The end of the games in China will be top for dollar. This will result in retest of recent low in dollar. The first quarter will show the U.S. in a L-shape recovery(stagflation) with enough consumer spending(budget) to keep American rates in a upward slope. A whipsaw of exchange is in the cards next year. American inflation is going to be more of a problem than anyone will care to admit. I find recent news of lowing of inflation talk to be misplaced. The current deflation in U.S economy pre-dates oils rapid rise. The fool will believe that dollar and oil are more "coupled" than is the case. This American downturn has much more to due with structure(oil could go to 50dollars)and not to relative oil or interest rate prices. The American gauges of any economic prediction are adjusted to read anything that makes situation look better than it really is.