You could be right. As we see World banks inflating the Chinese consumer, while contracting all american lending, the trade deficit is narrowing and china's surplus is collapsing. Is their intent a large intervention in the world trade system to offset the global imbalances? The problem with meddling in markets, is always unintended consequences.
There are also some other priviliges : In conclusion, if you do not receive a salary, consultancy fees or similar income in Croatia, the tax situation is very favorable. The following income is tax-free: - Interest payments - on loans, investments, deposits with financial institutions, public loans and securities and similar income. - Pensions received from abroad. - Capital gains - from trading securities and other financial assets, and capital gains from real estate if you occupied the real estate, held the property more than three years or sold it to your spouse or members of your immediate family. - Inheritance and gifts - are exempted from taxation in the first line of succession, and in other cases there is a single rate of only 5%.
A major problem I have with this analysis is that I didn't think of it!!! I always hate when that happens Your reasoning is clear and logical! Thanks for the insight! -gastropod
listen UBS guy from minute 6:16 here (CME Group webinar): http://lyris1.nuco.com/t/2778017/16079004/277761/0/
Who's worried about the federal reserve stepping in further? It's dangerous to short treasuries without clear and drawn out intentions from the fed. My fear is being short treasuries in some fashion and then have the federal reserve monetize even further and kill positions.
^ agree that the fed has something to do with it. My first reaction to the thread was that the Fed had stopped buying so aggressively, and that's why long yields were rising again... who knows what they will and wont do. I don't think they know themselves.
I agree that the fed can prop up treasuries, but it will be at the expense of the dollar. They are trying to dam the colorado river with a twig. The flow will eventually find a path no matter what they do. A good trade is short the dollar, short treasuries. Heads, I win, tails you lose trade.
Against the EUR the dollar will NOT go down. The dollar will more likely go up, and break the 1.25 line before the end of this year. The move may even start this week. How many of you have gone long the bonds in the 115 area? R U under? Many were explaining why bonds will go to 195. It was just less than 5 months ago. Some of those who gave such explanations are now in this thread giving an opposite explanation.