Comments on: Fed Watch: Is a Jobless Recovery Your Best Friend? http://wallstreetpit.com/9123-jobless-recovery-is-what-keeps-the-fed-goose-laying-the-golden-eggs Tue, 22 May 2012 19:21:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: slowsmile http://wallstreetpit.com/9123-jobless-recovery-is-what-keeps-the-fed-goose-laying-the-golden-eggs#comment-48461 slowsmile Tue, 04 Aug 2009 10:37:53 +0000 http://wallstreetpit.com/?p=9123#comment-48461 This is a very tender analysis of the US fiscal and monetary situation. But the assessment is somewhat incomplete. Remembering that the US Dollar is also a world reserve currency, what about the macro view and the outside effects of: *China recently spending her dollars buying up all the resources and raw materials on the planet. *Russia recently dumping 10% of her US Treasuries and diversifying into gold and other currencies. *A good likelihood of China introducing Yuan Bonds in the near future.This would be very damaging to the dollar in the long term. *China initiating large currency swaps with Belaruss, Malaysia, Hong Kong, Indonesia and Brazil. *China is now the largest producer of gold in the world. She is also quietly buying all her own gold. This is an ideal hedge against the dollar and US Treasuries. *Other major Central banks are also quietly buying gold instead of US Treasuries. These are all actions that could destroy or at least weaken the dollar considerably. This talk of recovery by 2012 is therefore unfounded and pie in the sky, since it is quite clear to me that the US Trade Dollar now has some big enemies. This is a very tender analysis of the US fiscal and monetary situation. But the assessment is somewhat incomplete. Remembering that the US Dollar is also a world reserve currency, what about the macro view and the outside effects of:

*China recently spending her dollars buying up all the resources and raw materials on the planet.

*Russia recently dumping 10% of her US Treasuries and diversifying into gold and other currencies.

*A good likelihood of China introducing Yuan Bonds in the near future.This would be very damaging to the dollar in the long term.

*China initiating large currency swaps with Belaruss, Malaysia, Hong Kong, Indonesia and Brazil.

*China is now the largest producer of gold in the world. She is also quietly buying all her own gold. This is an ideal hedge against the dollar and US Treasuries.

*Other major Central banks are also quietly buying gold instead of US Treasuries.

These are all actions that could destroy or at least weaken the dollar considerably.

This talk of recovery by 2012 is therefore unfounded and pie in the sky, since it is quite clear to me that the US Trade Dollar now has some big enemies.

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