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Revision History For: Currents of Currency

29 Aug 2014 08:34 PM <--
19 Aug 2014 01:28 AM
07 Oct 2002 11:35 AM

Return to Currents of Currency
 
Owing to low returns and mounting frustration with the pace of reform in Japan, Japanese investors have been particularly aggressive in snapping up US securities this year. In fact, through the first seven months of this year, US net inflows from Japan totaled $40 billion, double the level of the same period a year ago. In July, Japanese inflows totaled nearly $17 billion, or one-third of the monthly total. Purchases were directed primarily at US Treasuries and corporate bonds. Another 25% of total inflows in July ($13 billion) were courtesy of investors in Asia ex-Japan, with Chinese investors representing the largest share of purchases.>>

There is a message in this. It is a bit like the tech bubble where there are too many dollars flowing into too little potential. You have a cross current here where those that invest from both Asia think in terms of US is going to hold us up. You have too many dollars that do not know where to go. There has been speculation lately that the bond market is looking more like a bubble, real estate has gone up way to fast it self propelled at present as the job market is still tight. I keep thinking of the great depression the dollar flow was tight so Ag decided that letting lose a tremendous amount of dollars would halt any downturn. Theoretically you could have exactly the sane effect by issuing too many dollars which in the end destroys the value or strength of a dollar.

G-T and Zardoz have both called the Yen correctly Rose laid it out very clearly in terms of the Breton Woods ACT. The flood of dollars here for combined with the external costs being less are going to decrease our consumption ability. Quick summary in my onion it is impossible with an excessive funds flowing into American to avoid some sort of bubble in the dollar.

To avoid a depression the solution AG seems to have had be if you have adequate cash flow it is going to off set a down turn and there will be growth. The World Financial industry right now is reeling under the pressure.


quote.bloomberg.com

Never been more optimistic about the future our industry than I am right now, even though we are in the middle of this deep recession,'' Barrett said.

Intel is cutting its investments in technology companies to about $200 million this year, from about $1 billion in previous years.

These statements say nothing for you are optimistic you are going to be increasing your investment


``The drop is solely related to the marketplace. The venture capital market has dried up with a lack of new investments,'' Barrett said.

Or does this mean the public isn't quite as euphoric about the future as it was?

In China and India, there hasn't been a drop in investment, and that is helping those countries fuel growth in computer technology, Barrett said

Poverty has the advantage the hope of wealth one wee step up is growth, Wealth finds it needs monster foot holds as inches are measured in miles or every other country in the world owns or is owed wealths dollar

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