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Citing California, Iraqis Reject Democracy


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FNM duration gap swung from -1 month in June to +6 months in July

 

Look for bonds to settle and rally

Now that's what we all suspected ... that despite entering the bond market turbulence with closely matched durations, the spike in yields drove a widening gap between Fannie's asset and liability durations.

 

I think it shows that it's difficult to juggle huge portfolios in turbulent markets, on a 1% daytrading margin.

 

Fannie needs to review the chapter about "risk of ruin" in any how-to manual for casino gamblers. For Fannie, it's only a matter of time, I suspect.

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Japan-China trade soars 34% to record $60 bil

 

(Kyodo News)

 

Wednesday, August 13, 2003 at 07:35 JST

 

TOKYO ? The value of Japan-China two-way trade in the January-June period surged 34% over a year earlier to a record $60 billion, breaking a record for a fourth consecutive first-half period, according to the Foreign Ministry and government statistics.

 

The rise came despite the outbreak of severe acute respiratory syndrome (SARS) in China in November last year.

 

-----

 

While USD 60 billion is not a particularly large number in the scheme of things, I suggest if this rate of trade growth continues it will have some longer term implications for the USD as the reserve currency.

Many many things are going to have an impact on the dollar as reserve currency. Most countries are imaging ways to avoid having to chew their own arms off to escape the dollar reserve trap as we type.

That Japan and China should be each other's largest trading partners is perfectly natural.

Unfortunately, between Japan's colonial misadventures, China's self-inflicted insanities, and Western colonial occupation, including Britain's opium promotion activities, they done everything but.

 

Which also explains why the Japanese are less than eager to go to Iraq

(especially after the US interferred in the Iran-Japan oil deal).

 

Times have fortunately changed. Lastest Japan SDF recriutment poster:

 

"It's good to do your best. Go! Go! Peace!"

 

10asia.jpg

 

I'm still trying to get their damm

 

"Mr. Moonlight"

 

song out of my head.

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