Posts by "stationdealer"

The United Nations has slammed the U.S. dollar in a new report called Retooling Global Development. They're recommending an end to the dollar's role as dominant reserve currency, and pushing for a new global reserve regime based on a supranational currency made up of a basket of developed nation currencies.
http://www.un.org/esa/policy/wess/

Liquidity Fears Overrated, Part II

Umm, yes they were.

As expected, the 3-month refit provided sufficient to supply the liquidity needs as the market prepares for the expiration of the ECBs 1-year liquidity-provisions tomorrow.
There are lots of things to worry about in Europe but the ECB not supplying the market with enough liquidity is not one of them

Why Yes. The market is fixated on the maturity of the ECBs 1 year refi operations on Thursday when EUR 442 in funding will have to be replaced. The ECB had phased out its long-term refi operations over the last several months in an effort to wean European banks off of central bank life support. When the sovereign debt crisis hit its crescendo in May, the ECB reinstituted 3-month fixed rate refis with full allotment, meaning banks could borrow as much as they like.
So the net effect is that a one-year lending facility is being replaced with a three-month lending facility. Sounds like a tempest in a teapot, but thats what forex markets thrive on..



Things are fine for me so far. Yes, I am also watching 1040 in S&P and Aussie mining tax proposal by Julia Gillard tomorrow morning.
But then again I am getting skeptical about shorting US$ with NFP approaching.
What are your thoughts Fridays NFP?

The Third Depressionhttp://www.nytimes.com/2010/06/28/opinion/28krugman.html?hp

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as depressions at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

US Dollar as Reserve Currency in Jeopardy Again.
(Reuters) - A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value. http://www.reuters.com/article/idUSTRE65S40620100629
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Yuan Can Become Alternative Reserve Currency to US dollar-ADB http://www.reuters.com/article/idUSTOE65N06P20100624
* Internationalisation of yuan may be rapid process-ADB
* Yuan to push world toward multi-currency reserve system
* Capital controls can help economic management
HONG KONG, June 24 (Reuters) - China's yuan could rapidly become an internationally used currency and serve as an alternative to the U.S. dollar in central bank reserves, the Asian Development Bank said in a report on Thursday.
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"The US will 'Politely Default' on its Debt"
By Robert Huebscher of Advisor Perspectives http://www.zerohedge.com/article/big-call-jeff-gundlach-us-will-politely-default-its-debt
Todays economic problems, it seems, can be understood through the lens of pop artist Andy Warhol. Warhol, who DoubleLines Jeff Gundlach calls an absolute futuristic genius in his ability to depict trends in American consumerism, showed through his illustrations of everyday objects, such as Coca Cola cans, that products used by the upper crust of society were accessible to anyone in America. That accessibility made it natural for consumers to borrow money

Due to adjustments patriot Aus has already closed for the day, pending adjustments over in the European and US session. Today they will benefit from swap interest levels that will accumulate more GBP but will have clear demand building from this sell off. Its all in the balance of value.