Oil prices climb to $101.11 a barrel...

[MooseFET]

On Mar 27, 3:28 am, "Frithiof Andreas Jensen"
[....]

Interest rates in EUR are higher than in USD. That's pretty fundamental. The
EUR will climb to at least the level where one gets the same returns - and
of course the EUR will continue higher as long as Bernanke is spamming the
world with US paper.

It isn't just Bernanke. The government is borrowing money to buy
bombs to drop in Iraq. At the end of the day, the US is left with the
debt and nothing to show for it. It would be a different matter if
the US was buying production equipment, infrastructure or even
education with the money. That would mean that there would be assets
to cover the debt so the paper would have a little more backing.

[....]

Eventually even people as stupid and inbred as the Chinese central bankers

I don't see the Chinese central bank as stupid. They have made the
best investments they could given the situation. China is running a
surplus.

 

[Spehro Pefhany]

On Mar 27, 3:28 am, "Frithiof Andreas Jensen"
[....]

Interest rates in EUR are higher than in USD. That's pretty fundamental. The
EUR will climb to at least the level where one gets the same returns - and
of course the EUR will continue higher as long as Bernanke is spamming the
world with US paper.

It isn't just Bernanke. The government is borrowing money to buy
bombs to drop in Iraq. At the end of the day, the US is left with the
debt and nothing to show for it. It would be a different matter if
the US was buying production equipment, infrastructure or even
education with the money. That would mean that there would be assets
to cover the debt so the paper would have a little more backing.

[....]

Eventually even people as stupid and inbred as the Chinese central bankers

I don't see the Chinese central bank as stupid. They have made the
best investments they could given the situation. China is running a
surplus.

You should put "investment" in quotes- a T-bill denominated in USD
drops faster in value than the interest it returns.
Best regards,
Spehro Pefhany

 

[MooseFET]

On Mar 27, 3:28 am, "Frithiof Andreas Jensen"
[....]

Interest rates in EUR are higher than in USD. That's pretty fundamental. The
EUR will climb to at least the level where one gets the same returns - and
of course the EUR will continue higher as long as Bernanke is spamming the
world with US paper.

It isn't just Bernanke. The government is borrowing money to buy
bombs to drop in Iraq. At the end of the day, the US is left with the
debt and nothing to show for it. It would be a different matter if
the US was buying production equipment, infrastructure or even
education with the money. That would mean that there would be assets
to cover the debt so the paper would have a little more backing.

[....]

Eventually even people as stupid and inbred as the Chinese central bankers

I don't see the Chinese central bank as stupid. They have made the
best investments they could given the situation. China is running a
surplus.

You should put "investment" in quotes- a T-bill denominated in USD
drops faster in value than the interest it returns.

Yes, but they were still making the best bets they thought they
could. Making the US dependent on them, I'm sure they saw as a value
beyond the value of the T-bills. China is likely to make moves
counter to the US interest in africa etc and the US's ability to react
is now reduced.