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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
break of 10686 confirms lower to 10300/400.....
be sailin da sloop dawg in jam this winter...
come on down..need navigator
on 4 hr..will hold until invalidated....
talking heads saying dow rally won't hold....
what say subioski?
Long euro/usd @ 4419 stop according to o/c candle below 4364..
ECB buys trash, i.e. all those PIGS bonds no one else buys ( no not China ) but they sterilize it
It does that by auctioning seven-day term deposits from banks. The ECb has no other choice as its only mandate is stability. But I think this removal of extra liquidity is or can turn out as
deadly. What the ECB does is in another context dubbed as thrashing, i.e. throwing trash from one corner into the opposite corner and back and so on thus that trash appears to be non-existent ( its always in the air so to speak) . This method has failed in the past and will possibly fail again. In the thrashing analogy, when trash lands on the ground its suddenly there but counterparty is not there.
whenever there was a slowdown/downturn/crisis .... money flocked to US treasuries for safety... but things have changed recently and i'm not sure if this will be the case...
let's simply think of of countries as households....
US has enjoyed being the superpower creating the most output.... the biggest household... and it was a normal thing that money would flock to that household whenever things didn't look good....
because of ill handling of this fund and spending recklessly for too long...(how long have they've been having an account deficit?) i'm not sure if people will be convinced and tolerate any longer this kind of behavior by the US gov't....
US and Japan are two totally different nation and their behavior also very different... as much as there was no growth in japan for so long... they have spent their money wisely... so no point in comparing the two countries and the probable outcome...
simply think of income and expense.... no doubt that US makes the most income... but if they always spend more than they make... i'm not sure if that's a good place to invest....
to become rich and successful is not to make more.... but spend less than what you make...
a household or an individual will never be successful if his expenses are always more than his income....
3.6% but forecast is 2%
as for debasement of the dollar.. gold produces no cash flow and therefore has no intrinsic value.. US$ treasuries have..
anyway treasuries have always been much better investment/trading option then gold.. even recently..
http://blogs-images.forbes.com/afontevecchia/files/2011/08/gold-10-year.jpg
simply sell gold/buy treasuries.. particularly if Japanese style deflation grips the world..