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If that deal has really been done (offering China carte blanche to absorb Taiwan in exchange for doolar/T-bond support), then I'll worship at Hypertiger's feet before he feeds me giggling into the wood chipper.

 

Welcome to the New World Disorder ...

Yeah, well who the hell knows what kind of deals Baker is running around making. China and Europe sent a message a few weeks ago when they stopped buying -- perfect timing for a little international monetary blackmail considering how bad the neocons want this second term. B)

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If that deal has really been done (offering China carte blanche to absorb Taiwan in exchange for doolar/T-bond support), then I'll worship at Hypertiger's feet before he feeds me giggling into the wood chipper.

 

Welcome to the New World Disorder ...

In my opinion the Chinese are either idiots (which I don't believe) or they have us by the short ones.

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Then it becomes a question of when the Bank of China and the Bank of Japan finally pull the plug on their bad trades.

 

We know they can hide their losses for a long time, but even central banks have trading limits.

 

Calling Nick Leeson ...

The Bank of Japan seems completely willing to buy an unlimited amount of US$ to stabilize the $/yen rate. As long as they can sterilize this buy issuing new yen bills/bonds at low rates, they aren't going to stop.

 

The Bank of China has been especially active this week too.

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Blackbelt, the chart below seems to reinforce that many counting and starting point calculations of methodologies that are beyond me, such as Gann and Eliott, would have to come off the March lows. Red stuff at 0% and another couple of indicators bottomed there. No real momentum push started until that occured.

 

post-1-1071655473.png

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