Excellent Commentary, Slider123456 Slider123456 wrote.... It isn't a default just a sneaky devaluation so that the country won't have to default. They may as well start printing up that 10 trillion dollars now let them have the change by the time they are done printing it it will have a spending equivalence of 50 billion instead 500 billion..... pocket change. .................................................................................... Exactly......better to be Jane than Tom eh ? Needless to say....Tom will not be doing business in the same way any longer with Jane..... This is exactly why the oil/dollar ME hedge was put on.....wouldn't you ? The probable best route for the US Gummint is significant austerity measures.....
But since no one outside of Japan has ever put on that position, it's kinda besides the point. Long dollar & treasuries, on the other hand, has pretty much 95% of the financial world in on size.
I'll concede Treasuries have a much bigger global audience than JGB's though daily volume in Euro-Yen ain't chicken feed. The point though-and this is where you in particular shine-Americans have zero insight into anything outside the States. You for instance know 10x more about America than an American knows of Britain or the Euro-zone. Let alone Asia. Hell early last year the dollar was on three year highs against the Yen. Other than currency/futures traders I don't think 90% of ET was even cognizant of that fact. Try telling someone in Florida that the U.K. is in the midst of the same housing meltdown as us and you're rewarded with an empty stare. On another topic. Isn't it amusing how the Republicans here are taking heat on many of the SAME issues that are sending Labor into the polling abyss? The U.S. blames lack of regulation for things while the British are beginning to view too much government for many ills. The political spectrum truly is a circle......
Letting banking institutions make loans and then sell them as securities with no more culpability is a disaster waiting to happen and needs some form of regulation since the people that exploit these type of loopholes are too short-sited to see that all the profit in the world is meaningless without a middleclass and economy to back it up. Naked short selling is another regulation loophole that needs to be regulated as some people are too short sited and greedy to understand the long term repercussions which will inevitably hurt them as well as everyone else. Dragging everyone down with there insatiable greed.