Quote:

At a Feb. 3 meeting with Senate Democrats, Obama said: "I have shown myself during the course of this year more than willing to enforce our trade agreements in a much more serious way ... So the approach that we're taking is to try to get much tougher about enforcement of existing rules, putting constant pressure on China and other countries to open up their markets in reciprocal ways ... One of the challenges that we've got to address internationally is currency rates and how they match up to make sure that our goods are not artificially inflated in price and their goods are artificially deflated in price. That puts us at a huge competitive disadvantage."

Like I said, a strong dollar in Q110 helps the Fed "wiggle" and give a solid bid to the auctions this coming week. A monotonically ripping dollar will just gut us.



http://www.reuters.com/article/idUSN0424....

So many moving parts.
Won't a strong dollar guarantee Chinese willingness to continue buying our debt?
And if so, wouldn't it then be in the gov interest to allow the dollar to rise?

Strong dollar = China should SELL their T's on the market if they're smart. Find a couple of Japs to walk 'em into Italy lol.

China's peg is bad. Middle-east peg is totally cool though. Kinda a weird dynamic we got going.

The main energy exporters and manufactured goods exporter are tied to the dollar. How is that much different than the One-World-Currency tinfoil that is so popular?

Debt redemption and default drive currency fluctuations.

Everything else is just a side show.

Phirang has this dead right. They know they have to push the dollar slowly higher, or point blank its over. There is nothing else they can do, nothing. It’s the only way they can sell our debt. So they buy a year or so. That’s there thinking, buy a year or so..

"China should SELL their T's on the market if they're smart."

Depending on your reading of the mfh.txt, they are.

If you think they are proxy buying through HK, UK and Caribbean Banks, then they are not selling. Or the USA could be proxy buying to shore up the slack from PRC divesting. That's not a stretch as Benny has swaps he won't divulge to prop up other CB's and sovereign debt.

Considering GS is in collusion to prop up some other CB's and sovereign debt with CDS' and swaps it is not tinfoil at all to assume that Benny is propping up CB's and sovereign debt with his toolkit.